South Dakota Employer Registration

• Apply for an EIN (Employer Identification Number) with the IRS online.
• The IRS will assign you a unique nine-digit number to identify your business.
• To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”

• Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online for the EFTPS.
• You will be able to pay taxes and view payments made on your behalf with the Electronic Federal Tax Payment System (EFTPS).
• To find out more about EFTPS, please read our article, “What Is EFTPS?“

• New employers in South Dakota can register online with the Department of Labor and Regulations for their state unemployment insurance (SUI) account.
• Upon completion of your registration, you will be given a state unemployment tax assessment (SUTA) account, an unemployment tax rate, and a PIN for filing quarterly wages.
• To learn more about registering your business, please visit the SD Department of Labor and Regulation.

• South Dakota new employer SUTA rate for 2025 is 1.2%, plus an additional 0.55% Investment Fee for non-construction employers. For construction employers, the SUTA rate for 2024 is 6.0%, plus a 0.55% Investment Fee.
• Employers in South Dakota will receive a new State Unemployment Tax Assessment (SUTA) rate for years 2 and 3 of business. The rate is 1%, plus a 0.55% Investment Fee, for non-construction employers and 3%, plus a 0.55% Investment Fee, for construction employers if there is a positive account balance.
• To learn more about South Dakota Unemployment Insurance Tax, visit the South Dakota Department of Labor and Regulations.
• To learn more about SUTA, please read our article, “What Is SUTA Tax?”

• Workers’ comp insurance is not required in South Dakota. However, the state highly recommends carrying workers’ comp.
• Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

• Fill out the required Form I-9 for employee verification for working in the USA.
• This is a two-part form. The first section is to be completed by the employee and the second half is to be completed by the employer. To learn more, please read, “Form I-9 In a Nutshell.”
• You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information please read, “What Should Be in an Employee File?”

• Employees need to fill out the federal Form W-4, Employee’s Withholding Certificate for federal income taxes.
• For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?“

• Employers in South Dakota need to report new hires online within 20 days of hire or rehire with the South Dakota Department of Labor & Regulation.
• You can also phone 888-827-6078 (toll-free), fax 888-835-8659 (toll-free) or mail the SD New Hire Reporting Form to the DLR.
• For more information please read our article, “What Is New Hire Reporting?”

South Dakota’s minimum wage is $11.50 per hour for 2025. You will need to display the minimum wage poster for your employees, as required by law.

• Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!