South Dakota Reduces Surcharge for Third Quarter
The following information was released to TALX clients in South Dakota last week.
The state of South Dakota’s trust fund is no longer insolvent. Their $24 million Title
XII Federal loan has been repaid. In addition, the balance in the trust fund as of
June 30, 2010 was $15.9 million triggering a reduction in the surcharge that has been
in place since the fourth quarter, 2009. The surcharge is decreased from 1.0% to 0.1%
effective with the third quarter, 2010.
The 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.
What Employers Need to Know
This increase in the trust fund balance means employers’ tax rates for the third quarter,
2010 are decreased by 0.9%. The balance in the trust fund is projected to increase
above $16.5 million as of September 30, 2010 eliminating the surcharge all together
and reducing employers’ tax rates another 0.1% for the fourth quarter, 2010. This
fourth quarter change will not be official until sometime in early October. Another
notification will be issued at that time.
The lower surcharge rate will appear on your paper quarterly unemployment report or
when you file on the internet.
This weblog is sponsored by TALX.
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