How Much Does It Cost to Hire an Employee in South Dakota? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in South Dakota.
Total Cost at $60K Salary
$65,490
Cost multiplier: 1.09x
SUTA Rate (Mid)
1.0%
Wage base: $15,000
Workers' Comp Rate
1.18%
No state income tax
South Dakota Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.0% – 9.5% |
| SUTA New Employer Rate (typical) | 1.0% |
| SUTA Wage Base | $15,000 |
| Workers' Compensation (avg) | 1.18% of payroll |
| State Income Tax | No |
Example Employer Costs in South Dakota
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (SD) | $150 | $150 | $150 |
| Workers' Comp | $472 | $708 | $944 |
| Total Employer Taxes | $3,724 | $5,490 | $7,256 |
| Total Cost (salary + taxes) | $43,724 (1.09x) | $65,490 (1.09x) | $87,256 (1.09x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
How South Dakota Compares
South Dakota's typical SUTA rate of 1.0% is below the national average of ~1.70%.
Workers' compensation at 1.18% of payroll is below the national average of ~1.20%. As one of the states with no state income tax, employees in South Dakota keep more of their paycheck, which can be a hiring advantage without additional employer cost.
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