Department of Labor and Regulation

Unemployment Insurance

Unemployment Insurance Tax - Employer Updates

2013 Legislative update
(posted May 28, 2013)

HB 1055 imposes a penalty on claimants who commit fraud to secure increased benefits. A penalty of 50 percent of the amount of benefits obtained by fraud is applied for the first offense and a 100 percent penalty is applied for each subsequent offense. There is also no expiration of the administrative penalty applied for each week that an individual willfully or fraudulently misrepresents a fact to secure or increase benefits.

HB 1055 also prohibits relieving an employer account of charges if an erroneous payment was made because the employer was at fault for failing to respond timely or adequately to an agency request.

UI Information Exchange - SIDES and SIDES E-Response
(posted September 28, 2012)

A new State Information Data Exchange System (SIDES) and SIDES E-Response offer employers and third-party administrators (TPA) - free of charge - secure, electronic and standardized format to supply the information needed for responding to unemployment insurance (UI) benefit claim notices/information requests rather than by U.S. Postal Service mail.

SIDES and SIDES E-Response give employers an easy and efficient way to respond to UI information requests, saving time and money by:

  • Eliminating mail delivery allowing more time to gather information and respond timely.
  • Ensuring complete information is provided the first time reducing the need for phone calls.
  • Reducing paper handling, staff time and postage costs.

SIDES E-Response is a website through which employers and TPAs submit electronic responses to UI information requests. SIDES provides a more automated data-sharing and file-tracking interface between employers' information technology systems and state agency networks. SIDES is especially helpful to those who typically deal with a large volume of UI information and operate in multiple states. For more information on these two options, view a SIDES and SIDES E-Response Comparison Table.

For additional information on the SIDES computer-to-computer interface system, including how to sign up for it, view the SIDES Introductory Guide.

To participate in the SIDES E-Response system, complete and submit the registration form. Once your registration is approved, all Notice of Claim information will be emailed to you at the address you provided on your registration form. A Personal Identification Number (PIN) and the website address for accessing the SIDES E-Response website will be provided in each email notification. If you change your email address or decide you no longer wish to participate, contact contact the UI Tax Division at 605.626.2312; press 1 after you hear the automated greeting.

For more information:

SIDES E-Response User Guide

Additional information on SIDES and SIDES E-Response

Previous Employer Updates

Important Federal Law Change - posted December 28, 2011

2011 Legislative Update - posted March 22, 2011

No Employer Surcharge for Fourth Quarter 2010 or First Quarter 2011 - posted October 5, 2010

Important Federal Law Change (posted December 28, 2011)

Effective January 16, 2012, employers will be required to include an employee's date of hire when submitting a new hire report. The date of hire is the date an employee first performed services for pay. This requirement was enacted in Section 802 of the Claims Resolution Act of 2010 (CRA; Pub. L. No. 111-291) signed into law by President Obama on December 8, 2010.

The South Dakota New Hire Reporting Center currently accepts and processes the date of hire when it is included on new hire reports. Employers must submit rehires with the most recent date of hire.

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2011 Legislative Update (posted March 22, 2011)

Senate Bill 64 applies to employers that have a steadily increasing negative balance in their unemployment insurance account. The interest payments will still be deposited in the State UI Trust Fund as they have been in the past, but will now also be treated like the quarterly contribution and be credited to the UI account of the paying employer.

Senate Bill 86 reduces the maximum investment fee rate from 0.55 percent (fifty-five hundredths percent) to 0.53 percent (fifty-three hundredths percent) and is effective immediately. The reduction is available to experience rated employers in operation three years or longer.

Senate Bill 125 changes the account balance date and payroll period ending date used in the rate calculation from the current December 31 to June 30. Your rate will be based on your account status as of June 30 immediately preceding the year for which the rate is assigned. Contribution payments made in July will be included in the balance. As a result, you will receive future rate notices before the calendar year starts, rather than after it starts as is now the case. The Department anticipates the rate notices for 2012 will be provided to employers no later than November 2011.

See current tax rates and wage base.

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No Employer Surcharge for Fourth Quarter 2010 or First Quarter 2011

An employer surcharge is not in effect for the Fourth Quarter 2010, October 1 through December 31, because the UI Trust fund on September 30 was $27.7 million. The surcharge comes off when the fund exceeds $16.5 million at the end of a quarter.

The surcharge automatically goes into effect when the UI Trust Fund balance is below $11 million at the end of any quarter. The Department of Labor predicts the Trust Fund balance will be $25 million on December 31, so there will also be no surcharge for the first quarter in 2011.

Employers who have questions about their account are encouraged to contact the Unemployment Insurance Division at 605.626.2312. (posted October 5, 2010)

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Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184