Unemployment insurance tax cut goes into effect January 1

PIERRE, S.D.(Press Release) – The bill to cut unemployment insurance employer contributions by 0.5%, HB 1011, goes into effect on January 1st, 2024. This bill delivers an $18 million tax cut for South Dakota businesses.

“The first bill I signed last legislative session delivered a massive tax cut to South Dakota businesses,” said Governor Kristi Noem. “Our unemployment reserves are strong, our economy is continuing to thrive, and more businesses are moving to our state. Now, our hardworking business owners will get to keep more of their hard-earned dollars.”

South Dakota was the only state to reject additional elevated unemployment benefits offered by the federal government during the pandemic. People kept working. Unemployment rates remained low. And earlier this year, South Dakota broke the national record for the lowest unemployment rate.

Now, with a very healthy unemployment trust fund balance, we are cutting the unemployment tax for businesses.

If you’re a businessowner who is interested in moving to a state that lets you keep more money in your pocket, visit FreedomWorksHere.com.