📝 Overview
This guide covers state tax information for employers running payroll in South Dakota. South Dakota has no state income tax, so only Unemployment Insurance applies at the state level. Use the section below to find agency contact information, supported tax filings, and the account details required for tax setup.
⚙️ South Dakota Tax Information
Click the arrow to view Unemployment Insurance information
Click the arrow to view Unemployment Insurance information
Agency Information
Website: South Dakota Department of Labor & Regulation
Phone: (605) 626-2312
Required for Tax Setup
Unemployment Account Number (8 or 9 digits, e.g., 12345.6-7)
Unemployment Insurance Base Tax Rate (X.XX%)
Third Party Administrator (TPA) Access
South Dakota uses a mail-based TPA authorization process. To authorize DaySmart Payroll to submit your quarterly returns and payments electronically, please send us the letters received from the South Dakota Department of Labor and Regulation that contain your Authentication Key and Security Code. These letters are mailed to the business address on record.
⚠️ Without providing the Authentication Key and Security Code, DaySmart Payroll can still submit your quarterly returns and payments, but only through USPS mail. Providing these credentials enables electronic filing.
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
Click the arrow to view frequently asked questions
Click the arrow to view frequently asked questions
Does South Dakota have a state income tax withholding requirement?
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Click the arrow to see the answer
No. South Dakota does not have a state income tax, so there is no withholding requirement for employers. Only Unemployment Insurance applies at the state level.
What is the South Dakota TPA Authentication Key and Security Code?
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Click the arrow to see the answer
South Dakota's TPA authorization process requires an Authentication Key and Security Code that the state mails to your business address. These credentials allow DaySmart Payroll to file and pay electronically on your behalf. Without them, filings are submitted by mail. If you have not received these letters, contact the South Dakota Department of Labor and Regulation at (605) 626-2312.
Where do I find my South Dakota UI account number and base tax rate?
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Click the arrow to see the answer
Your UI account number and base tax rate are assigned by the South Dakota Department of Labor and Regulation when you register. Your rate is included in an annual rate notice. If you need to look these up, log into your SD UI employer account or contact the agency at (605) 626-2312.