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.

    State

    South Dakota Change state

    Pay type
    $

    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 rate1.2%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 programNo
    State income tax on wagesNo
    State minimum wage$11.50/hour
    SourceSouth 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

    StateNew employer rateWage baseMax SUTA per employee
    South Dakota1.2%$15,000.00$180.00
    North Dakota1%$46,600.00$466.00
    MinnesotaVaries$44,000.00Varies
    IowaVaries$20,400.00Varies
    Nebraska1.25%$9,000.00$112.50
    WyomingVaries$33,800.00Varies
    MontanaVaries$47,300.00Varies

    Hiring outside the US?

    Compare the cost of an international contractor or EOR employee before you commit to a US hire.

    See how Deel works

    Paying vendors and contractors?

    Automate accounts payable and payments so contractor costs stay predictable.

    See how BILL works

    Frequently asked questions

    Sources & methodology

    Last verified: 2026-10-11

    Employee cost calculators for other states

    Tax rates are approximate — always verify with your state's revenue department.

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