For Immediate Release: Monday, September 30, 2013
Media Contact: Dawn Dovre, 605.773.3094
Council Votes to Propose Lower Employer Tax Rates
PIERRE, S.D. -- The Department of Labor and Regulation's Unemployment Insurance Advisory Council voted 7-0-1 this morning to propose legislation lowering employer tax contributions effective Jan. 1, 2015.
The Council's recommendation to Gov. Dennis Daugaard and the 2014 Legislature sets the taxable wage base at $14,000 and reduces the threshold for employers to achieve a lower tax rate.
The range of the tax rate remains between zero percent and 9.5 percent.
Legislative changes adopted in 2010 increase the taxable wage base each year through 2015. The wage base will increase to $14,000 in 2014 and $15,000 in 2015.
"Not only will employers see a savings by setting the taxable wage base at $14,000, but with a new reserve system, all employers could potentially achieve a lower tax rate," said state Labor and Regulation Secretary Pam Roberts.
In 2010, the Council adopted the U.S. Department of Labor's recommendation of a Trust Fund balance of $76 million to cover one year of benefit payments. The Trust Fund is projected to reach $76.1 million by the end of 2014.
"We made some tough decisions in the past that helped re-establish a healthy and reasonable balance," said Secretary Roberts. "We are now able to lessen the burden on employers, which is the philosophy of the Daugaard administration."
The Unemployment Insurance Advisory Council is tasked with reviewing the unemployment system for its content, adequacy and effectiveness and make recommendations for its improvement. For more information, visit the Department of Labor and Regulation's Web page regarding the Council.
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