An Act to revise unemployment insurance contribution rates.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 61-5-29 be AMENDED:
61-5-29.
Employers required
by this title to pay contributions, except employers pursuant to
chapter 61-5A,
that reimburse the unemployment compensation trust fund for benefits
paid in lieu of contributions, shall also pay an employer's
investment in South Dakota's future fee, hereinafter referred to as
the, investment fee, on wages as defined by this title. The fee rate
for employers not eligible for experience rating, as defined in
61-5-24,
must be seventy hundredths percent through calendar year 2006 and
fifty-five hundredths percent on and after January 1, 2007. If an
employer is eligible for experience rating, the employer's reserve
ratio must be determined pursuant to 61-5-25.3
through calendar year 2017, pursuant to 61-5-25.4
for calendar years 2018 and 2019, pursuant to 61-5-25.5
for calendar year 2020 through calendar year 2023, and pursuant to
61-5-25.6
for calendar year 2024 and each year thereafter, and the employer's
investment fee rate must be the
applicable rate
appearing in
column "A" on the same line the employer's reserve ratio
appears in column "B" of the following rate schedule:
section 2 of this Act.
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The terms and conditions of this title that apply to the payment and collection of contributions also apply to the payment and collection of the investment fee. Proceeds from the investment fee must be deposited in the clearing account of the unemployment compensation fund for clearance only and may not become part of the fund. After clearance, the money derived from the investment fee payments, less refunds made pursuant to the provisions of this title, must be deposited in the employer's investment in South Dakota's future fund as provided for in 61-5-29.1. No investment fee payment may be credited to the employer's experience-rating account nor may the payment be deducted in whole or in part by any employer from the wages of individuals in its employ.
The investment fee rate may not be increased over the applicable 1987 investment fee rate for any employer with a positive balance in the employer's experience-rating account on the computation date, as established in rules promulgated by the secretary of labor and regulation pursuant to chapter 1-26, for the current year and the year preceding the current year.
The investment rates provided in
this section
section 2 of this Act
apply to and are retroactive to taxable wages paid on and after
January 1, 1993.
Section 2. That a NEW SECTION be added to chapter 61-5:
The applicable employer's investment fee rate for 61-5-29 is as follows:
(1) Beginning January 1, 2024, an:
(a) Investment fee rate of 0.53% with a reserve ratio of less than 1.00%;
(b) Investment fee rate of 0.50% with a reserve ratio of 1.00% and less than 1.20%;
(c) Investment fee rate of 0.40% with a reserve ratio of 1.20% and less than 1.30%;
(d) Investment fee rate of 0.30% with a reserve ratio of 1.30% and less than 1.40%;
(e) Investment fee rate of 0.20% with a reserve ratio of 1.40% and less than 1.50%;
(f) Investment fee rate of 0.10% with a reserve ratio of 1.50% and less than 1.60%;
(g) Investment fee rate of 0.00% with a reserve ratio of 1.60%.
(2) Beginning January 1, 2025, an:
(a) Investment fee rate of 0.424% with a reserve ratio of less than 1.00%;
(b) Investment fee rate of 0.40% with a reserve ratio of 1.00% and less than 1.20%;
(c) Investment fee rate of 0.32% with a reserve ratio of 1.20% and less than 1.30%;
(d) Investment fee rate of 0.24% with a reserve ratio of 1.30% and less than 1.40%;
(e) Investment fee rate of 0.16% with a reserve ratio of 1.40% and less than 1.50%;
(f) Investment fee rate of 0.08% with a reserve ratio of 1.50% and less than 1.60%;
(g) Investment fee rate of 0.00% with a reserve ratio of 1.60% or greater.
(3) Beginning January 1, 2026, an:
(a) Investment fee rate of 0.318% with a reserve ratio of less than 1.00%;
(b) Investment fee rate of 0.30% with a reserve ratio of 1.00% and less than 1.20%;
(c) Investment fee rate of 0.24% with a reserve ratio of 1.20% and less than 1.30%;
(d) Investment fee rate of 0.18% with a reserve ratio of 1.30% and less than 1.40%;
(e) Investment fee rate of 0.12% with a reserve ratio of 1.40% and less than 1.50%;
(f) Investment fee rate of 0.06% with a reserve ratio of 1.50% and less than 1.60%;
(g) Investment fee rate of 0.00% with a reserve ratio of 1.60% or greater.
(4) Beginning January 1, 2027, an:
(a) Investment fee rate of 0.212% with a reserve ratio of less than 1.00%;
(b) Investment fee rate of 0.20% with a reserve ratio of 1.00% and less than 1.20%;
(c) Investment fee rate of 0.16% with a reserve ratio of 1.20% and less than 1.30%;
(d) Investment fee rate of 0.12% with a reserve ratio of 1.30% and less than 1.40%;
(e) Investment fee rate of 0.08% with a reserve ratio of 1.40% and less than 1.50%;
(f) Investment fee rate of 0.04% with a reserve ratio of 1.50% and less than 1.60%;
(g) Investment fee rate of 0.00% with a reserve ratio of 1.60% or greater.
(5) Beginning January 1, 2028, an: