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South Dakota Compliance and Regulatory Resources

Paychex helps South Dakota businesses by providing resources like our enhanced HR library and automated compliance notifications. Explore state requirements such as minimum wage, workplace safety, and more.

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State Tax Rates and Limits

State Unemployment Taxable Wage Base Limit
$15,000

State Unemployment Rate Range for Employers
0% to 9.13%

State Unemployment New Employer Rate
1.2%, 1.0% New Employer, 6.0%, 3.0% New Construction

State Hourly Minimum Wage
$11.85

State Minimum Wage for Tipped Employees
$5.925
SD wage and hour information


State Tax ID Registration

State Unemployment Insurance (SUI) Registration

All Taxpay® clients are required to have an active South Dakota Unemployment Insurance account number to file electronically with the South Dakota Department of Labor & Regulation. This can also be referred to as the Employer ID Number (ERN).

Paychex must also be authorized as the Third-Party Administrator (TPA) on the account for filing quarterly returns, remitting payments, as well as making any adjustments to returns and payments on your behalf.

Register a New Business

  1. Complete the Reemployment Assistance Tax Employer Registration and select Complete the registration online.
  2. Follow the steps to retrieve your ID number.
  3. You will arrive to the Confirmation Page once the registration is complete. Take a screenshot of this screen.
    • SD SUI Account Number format: XXXXX . X - X (7 Digits)
  4. See the Designating Paychex as Your Third-Party Administrator (TPA) section for instructions for assigning Paychex as the TPA for your account to submit quarterly returns and payments on your behalf.
  5. Enter your new account number in your Paychex Flex® account and email the screenshots of your registration confirmation and the POA form to your Paychex Service Professional.
    • Refer to Updating Tax IDs for instructions on how to update the information in the application.

Designating Paychex as Your Third-Party Administrator (TPA)

South Dakota Department of Labor & Regulation requires Professional Employer Organization (PEO) entities operating under a co-employment agreement to provide separate Powers of Attorney (POAs) and Third-Party Administrator (TPA) instructions from those required for non-PEO employers.

Please contact your Paychex Service Professional to confirm whether you should follow the PEO or Non-PEO Employer instructions and use the appropriate TPA instructions outlined below.

Non-PEO Employers:

  1. Complete the Power of Attorney (POA) form using the following details to assign Paychex as the POA.
    • For the Limited Power of Attorney, enter:
      • Does hereby Appoint POA: Paychex, Inc
  2. Email your registration confirmation document and POA form to your Paychex Service Professional.

PEO Employers:

  1. Complete the Power of Attorney (POA) form using the following details to assign Paychex as the POA.
    • For Tax Power Attorney:
      • Does hereby Appoint POA: Paychex, Inc
      • Address: 970 Lake Carillon Dr. Suite 400
      • City / State / Zip: St. Petersburg, FL 33716
    • For Benefits Power of Attorney:
      • Does hereby Appoint POA: Paychex, Inc
      • Address: PO Box 2000
      • City / State / Zip: Henrietta, NY 14467
  2. Email your registration confirmation document and POA form to your Paychex Service Professional.

Finding an Existing ID

If you have a South Dakota SUI ID but aren’t sure what it is, you should be able to find it on:

  1. Any correspondence from the Department of Labor & Regulation.
  2. Previously filed returns.

Additional Resources


Workplace Safety

OSHA
South Dakota is under federal OSHA jurisdiction that covers most private-sector workers within the state. State and local government workers are not covered by federal OSHA. Additional information available


Workers' Compensation

Coverage is optional for all employers.


Compliance Insights