South Dakota Eliminates Surcharge for Fourth Quarter
The following was sent to TALX clients –
state of South Dakota’s trust fund remains solvent. The balance in the trust fund
as of September 30, 2010 was $27 million, which results in the elimination of the
remaining surcharge of 0.1% that had been in place for the third quarter, 2010. The
surcharge had decreased from 1.0% for the first and second quarters of 2010 to 0.1%
effective with the third quarter, 2010. The surcharge has been eliminated for fourth
quarter, 2010 as the trust fund balance exceeds $16.5 million at the end of the quarter.
trust fund has been increasing as a result of the passage of SB186 and HB1018 during
the 2010 legislative session. SB186 reduced the surcharge amount for 2010 and 2011,
increased the taxable wage base and created a new tax rate table with higher rates
for employers with negative account balances. HB1018 brought $11.7 million in federal
funds to the trust fund while expanding benefits for workers in state-approved training
for high-demand occupations.
Employers Need to Know
increase in the trust fund balance means employers’ tax rates for the fourth quarter,
2010 are decreased by 0.1%. The balance in the trust fund, as projected, increased
above $16.5 million as of September 30, 2010 eliminating the surcharge all together.
eliminated surcharge rate should appear as 0.0% on your paper quarterly unemployment
report or when you file on the internet.
You Can Expect
analysis and understanding of state unemployment tax changes, employers can be proactive
in unemployment budget planning, impact studies and rate projections. In the event
of an impending merger, acquisition, reorganization, or divestiture, additional employment
tax planning and compliance issues should be examined.
This weblog is sponsored by TALX.
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