South Dakota Paycheck Calculator

Use South Dakota Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid. 

South Dakota Payroll Taxes

There is one South Dakota employer payroll taxes to keep track of in addition to Social Security and Medicare. 

Employers contribute to a state unemployment tax account (SUTA). 

There are no state income taxes in South Dakota. 

SUTA

Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.

In South Dakota, the current taxable wage base is $15,000, with rates ranging from 1.2% to 6.0%. Most new employers in South Dakota pay a SUTA rate of 1.2% their first year and 1.0% in years two and three. 

Some business types have different rules and regulations for SUTA taxes in South Dakota. For more information visit the Department of Labor and Regulation.

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in South Dakota, you’ll need to register to pay state withholdings with the Secretary of State and the Department of Revenue. To pay SUTA taxes, you’ll register with the Department of Labor and Regulation.

Check with the relevant agencies to be sure of payment deadlines. Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.

Using a Payroll Tax Service

In South Dakota, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.

You’ll just send over your digital timesheets and relevant information, and the service provider will take care of the calculations, payments, and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!