The New Year is here, and while many people are working on their resolutions, South Dakota employers are preparing for lower unemployment insurance tax rates for 2015.

Over the past several years, this state has been one of the best in terms of employment, with a significantly low jobless rate and other positive conditions. According to the U.S. Bureau of Labor Statistics, South Dakota’s unemployment rate in November – the most recent data available – was at 3.3 percent. By comparison, the national rate was at 5.8 percent for the month. This means South Dakota has one of the lowest rates in the nation, bested only by its neighbor North Dakota and Nebraska.

The low unemployment rate in South Dakota, paired with a stronger economy and other recent trends, has allowed state legislators to reduce employer contributions to the local unemployment insurance trust fund. This fund is used to cover jobless benefits throughout the year.

Rates dropped on Jan. 1
Starting on Jan. 1, 2015, South Dakota employers got to ring in the New Year with lower unemployment rates. According to the South Dakota Department of Labor and Regulation, this change is contingent on several factors.

“South Dakota’s jobless rate remains more than 2 percent below the national average.”

For starters, the trust fund must remain above a balance set by the state. In addition, the trust fund’s annual growth must exceed $1 million. This way, South Dakota can ensure that the fund remains solvent moving forward.

“Approximately 70 percent of experience-rated employers will have a lower tax rate in 2015 than in 2014, which will result in savings for South Dakota businesses and employers,” said state Labor and Regulation secretary Marcia Hultman.

This recent change was first proposed in 2014, as South Dakota’s Unemployment Insurance Advisory Council determined the employment situation in the state warranted a more favorable employer contribution scale than in years past.

Overall, the changes in South Dakota are generally positive. The state has maintained one of the lowest jobless rates for months, and that is one reason why the stress on the unemployment insurance system remains minimal. Ideally, this trend will continue throughout 2015.

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


Contact CCC to see how we can save your organization time and money.
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(800) 207-6926

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