South Dakota SB 26 Change Notification
This measure reduces employer contribution rates for reemployment assistance. The adjusted contribution rates apply to taxable wages paid on and after July 1, 2026.
An employer’s reserve ratio for calendar year 2026 and each year thereafter will be the result of the balance of credits existing in the employer’s experience-rating account as of June 30 preceding the year the rate is to be calculated, divided by the total taxable payroll of the employer for the preceding three fiscal years. An employer’s experience-rating account balance is the balance on July 31 of the year preceding the year rates are calculated and is the difference between the contributions paid through July 31 and the benefits paid through the preceding June 30.
Effective Date
January 1, 2027
South Dakota Senate Bill 26 Implication to Stakeholders
Employers could see a decrease in their unemployment tax rates for 2027 and beyond as a result of this change.
Recommended Action
When unemployment tax rates for 2027 are issued by the state, employers should audit them for accuracy and question any discrepancies found. They should also expect a decrease in their unemployment tax rate.
