Employee Cost: South Dakota vs Wyoming (2026)

Side-by-side comparison of employer costs, payroll taxes, SUTA rates, and workers' comp.

At a $60,000 salary

South Dakota saves $223/employee/year

$65,490 in South Dakota vs $65,713 in Wyoming

South Dakota

$65,490

1.09x salary

Wyoming

$65,713

1.1x salary

Cost Breakdown Comparison

Based on $60,000 annual salary

Cost Component SD WY Diff
Base Salary $60,000 $60,000
Social Security (6.2%) $3,720 $3,720
Medicare (1.45%) $870 $870
FUTA (0.6%) $42 $42
SUTA (State Unemployment) $150 $331 -$181
Workers' Compensation $708 $750 -$42
Total Employer Cost $65,490 $65,713 -$223

Tax Rate Comparison

Rate South Dakota Wyoming
SUTA Rate Range 0.0% – 9.5% 0.08% – 8.78%
SUTA Typical Rate 1.0% 1.07%
SUTA Wage Base $15,000 $30,900
Workers' Comp Rate 1.18% 1.25%
State Income Tax No No

What This Means for Employers

For a business hiring at a $60,000 salary, choosing South Dakota over Wyoming saves $223 per employee per year in employer-side payroll costs alone. For a team of 10, that's $2,226 annually.

The biggest difference comes from SUTA (state unemployment tax) — South Dakota charges 1.0% vs Wyoming's 1.07%. Note that federal taxes (Social Security, Medicare, FUTA) are identical in both states.

These numbers reflect employer-side costs only and don't include benefits, overhead, or the employee's own tax burden. Use the interactive Employee Cost Calculator to model different salary levels and benefits packages.

Cost Comparison at Different Salary Levels

How the gap changes from $30K to $150K

Salary SD Total WY Total Difference
$30,000 $32,841 $33,033 -$192
$40,000 $43,724 $43,933 -$209
$50,000 $54,607 $54,823 -$216
$60,000 $65,490 $65,713 -$223
$75,000 $81,815 $82,048 -$233
$100,000 $109,022 $109,273 -$251
$125,000 $136,230 $136,498 -$268
$150,000 $163,437 $163,723 -$286

Click any amount to see the full cost breakdown for that salary and state. Amounts shown from the perspective of SD.

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