South Dakota Employee Cost Calculator (2026)
Last updated: October 2026
South Dakota employers pay federal payroll taxes plus South Dakota unemployment insurance — 1.2% for new employers on the first $15,000.00 of each employee's wages. Use the calculator to see the total cost of a hire.
Total annual cost
$64,962.00
1.08× salary · $4,962.00 on top of wages
Monthly cost
$5,413.50
Loaded hourly cost
$31.23
Per hour actually worked
$32.48
| Wages | $60,000.00 |
| Social Security (6.2%) | $3,720.00 |
| Medicare (1.45%) | $870.00 |
| FUTA (federal unemployment) | $42.00 |
| State unemployment (SUTA) | $180.00 |
| Workers' comp | $150.00 |
| Total annual cost | $64,962.00 |
Estimates for planning purposes only. Not tax, legal or accounting advice. Confirm your rates with your state agency or a payroll professional.
South Dakota employer payroll taxes at a glance
| New employer SUTA rate | 1.2%1.2% base for new non-construction employers plus a 0.55% Investment Fee (about 1.75% total); construction has separate rates. Confirm experienced-rate ranges with SD DLR. |
| SUTA taxable wage base | $15,000.00 |
| Max SUTA per employee per year | $180.00 |
| Paid family/medical leave program | No |
| State income tax on wages | No |
| State minimum wage | $11.50/hour |
| Source | South Dakota unemployment insurance agencyVerified 2026-10-11 |
What it costs to hire in South Dakota
Salary
$40,000.00
Total annual cost
$50,582.00
1.26× salary · SUTA $180.00
Salary
$60,000.00
Total annual cost
$72,762.00
1.21× salary · SUTA $180.00
Salary
$90,000.00
Total annual cost
$106,032.00
1.18× salary · SUTA $180.00
What's different about hiring in South Dakota
- South Dakota has no state income tax on wages, which simplifies payroll withholding (though it doesn't reduce your employer cost).
- Hiring remotely in another state? You generally owe SUTA in the state where the employee works — compare rates in neighboring states below.
Compare neighboring states
Hiring outside the US?
Compare the cost of an international contractor or EOR employee before you commit to a US hire.
See how Deel worksPaying vendors and contractors?
Automate accounts payable and payments so contractor costs stay predictable.
See how BILL worksFrequently asked questions
Sources & methodology
- South Dakota unemployment insurance agency
- SSA — Social Security wage base
- IRS Topic 759 — FUTA
- Patriot Software — state unemployment tax rate chart
Last verified: 2026-10-11
Employee cost calculators for other states
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Tax rates are approximate — always verify with your state's revenue department.