What employer payroll taxes apply in South Dakota?

Federal FUTA (effective 0.6% on the first $7,000), South Dakota state unemployment insurance on the state wage base, and the employer share of Social Security (6.2%) and Medicare (1.45%). South Dakota has no state income tax to withhold.

What is the South Dakota SUI wage base?

South Dakota applies unemployment insurance tax only to the first portion of each employee's annual wages — a state wage base of roughly $15,000. Your rate is experience-rated; new employers use the assigned new-employer rate.

Does South Dakota have an SDI or PFML payroll tax?

No. South Dakota does not levy a state disability insurance or paid family and medical leave payroll tax, so there is no additional state employer contribution beyond unemployment insurance.

How is FUTA calculated?

The Federal Unemployment Tax Act rate is 6.0% on the first $7,000 of wages, but employers in compliant states receive a 5.4% credit, making the effective rate 0.6% — a maximum of $42 per employee per year.

Does this include the employee's share?

No. This shows employer-side taxes only. Social Security and Medicare are also withheld from the employee's pay at the same rates, but those are the employee's contribution, not the employer's cost.

South Dakota Employer Payroll Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

South Dakota employers owe federal FUTA, the employer share of FICA, and South Dakota state unemployment insurance — but no state income tax withholding and no SDI or PFML payroll tax. This calculator sums those employer-side costs for one employee so you can budget the true cost of payroll.

How it works

Each tax applies to either total wages or a capped wage base:

FUTA   = 0.6% × min(wages, $7,000)
SD SUI = your rate × min(wages, ~$15,000 state base)
SS     = 6.2% × min(wages, federal wage base)
Med    = 1.45% × all wages

FUTA. Effective 0.6% after the 5.4% state credit, capped at the first $7,000 — a maximum of $42 per employee.
South Dakota SUI. Experience-rated, applied only to the state wage base (around $15,000). New employers use their assigned rate.
FICA. Social Security at 6.2% to the federal wage base, Medicare at 1.45% on all wages.

Tips and example

For an employee earning $60,000 at a 1.2% SUI rate: FUTA is $42 (0.6% of $7,000), SUI is about $180 (1.2% of the $15,000 base), Social Security is $3,720, and Medicare is $870 — a combined employer cost of roughly $4,812 on top of wages.

This estimates major statutory taxes only. It excludes workers’ compensation, benefits, and the employee’s own FICA withholding. Confirm your current SUI rate and wage base with the South Dakota Department of Labor and Regulation.