Capital City
Pierre
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
None
Employer Tax
1.0% - 1.2% (during the first three years)
Capital City
Pierre
Timezone
CST
(
GMT-6
)
Paid Leave
None
Income Tax
None
Employer Tax
1.0% - 1.2% (during the first three years)
South Dakota does not impose state income tax, so employers are not required to withhold state income tax from employee wages. Employers must comply with federal payroll tax requirements, including withholding federal income tax and FICA taxes (Social Security and Medicare). Additionally, they are responsible for federal unemployment taxes (FUTA). Employers must pay wages at least once per calendar month, unless otherwise specified by law or mutual agreement.
Access competitive benefits like health insurance and retirement plans, often at a lower cost through a PEO. Leverage its pooled volume for enterprise rates—resold to PEO customers, with no employment minimums in South Dakota.
Check out our comprehensive state hiring guide.
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FAQS
A PEO assists businesses in South Dakota by ensuring adherence to federal employment regulations, managing payroll taxes, and maintaining compliance with workers’ compensation and unemployment insurance requirements. Their expertise helps mitigate legal risks associated with employment practices.
Yes, PEOs operating in South Dakota must comply with federal regulations and adhere to state-specific requirements related to employment practices, workers’ compensation, and unemployment insurance contributions.
Absolutely. PEOs provide small businesses in South Dakota with access to comprehensive HR services, competitive employee benefits, and assistance with regulatory compliance, enabling them to focus on core business operations and growth.
Yes, a PEO can help with compliance in South Dakota by managing payroll, ensuring adherence to employment laws, and handling benefits administration, thereby reducing the risk of non-compliance with state and federal regulations.
Terminating a relationship with a PEO in South Dakota involves reviewing the service agreement for termination clauses, providing the required notice, and ensuring a smooth transition of HR responsibilities back to the company or to another service provider. It’s advisable to consult legal counsel to navigate the termination process effectively.
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Your “everything you ever needed to know” guides to compliant employment around the United States.