🏛️
Taxes
South Dakota Payroll Taxes 2026: Complete Overview for Employers
No state income tax, but SUI on $15,000 and federal obligations still apply.
Practical, accurate resources for South Dakota small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
No state income tax, but SUI on $15,000 and federal obligations still apply.
How to register with South Dakota Department of Revenue and South Dakota Department of Labor and Regulation as a new South Dakota employer.
New employer rate 1.2%, experienced range 0.00%–9.35%, wage base $15,000.
South Dakota minimum wage is $11.55/hr. South Dakota’s minimum wage is $11.55/hr, adjusted annually for inflation. Tipped employees may be paid $5.78/hr (50% of minimum wage).
Monthly pay required. Final pay: Final wages are due on the next regular payday, or within 5 business days if no payday is scheduled..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, South Dakota-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and South Dakota new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and South Dakota recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for South Dakota small businesses.
Federal OT after 40 hrs/week, South Dakota overtime rules, exemptions, salary thresholds.