This bill amends existing laws regarding employer contribution rates and administrative fees for reemployment assistance in South Dakota. It establishes that the employer's reserve ratio for calendar year 2024 and each year thereafter will be calculated based on the balance of credits in the employer's experience-rating account as of June 30 of the preceding year, divided by the total taxable payroll for the previous three fiscal years. The contribution rates will apply to taxable wages paid from January 1, 2024, to December 31, 2025. Additionally, a new section is added to specify that the employer's reserve ratio for calendar year 2026 and beyond will follow the same calculation method, with contribution rates applying to taxable wages paid on and after July 1, 2026.

The bill also modifies the administrative fee structure for employers eligible for experience rating. It stipulates that if an employer's reserve ratio is below two and one-quarter percent, they must pay an administrative fee of two-hundredths percent through calendar year 2025, increasing to eight-hundredths percent for calendar year 2026 and thereafter. Furthermore, it clarifies that the proceeds from the administrative fee and the investment fee must be deposited into specific funds and cannot be credited to the employer's experience rating account or deducted from employee wages. The investment fee rates are also updated to reflect the new calculations for employers eligible for experience rating, ensuring that the fee structure is consistent with the changes made in the bill.

Statutes affected:
Introduced, 01/03/2025: 61-5-25.6, 61-5-28.1, 61-5-29