This bill amends existing laws regarding employer contribution rates and administrative fees for reemployment assistance in South Dakota. Specifically, it modifies the calculation of the employer's reserve ratio for the years 2024 and 2025, establishing that it will be 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. Additionally, a new section is introduced to set the same calculation method for the year 2026 and beyond, with the contribution rates applying to taxable wages paid on or after January 1, 2026.

Furthermore, the bill increases the administrative fee rate for employers eligible for experience rating. For calendar years 2024 and 2025, the fee remains at two-hundredths percent if the employer's reserve ratio is below two and one-quarter percent. However, starting in 2026, the administrative fee will increase to eight-hundredths percent. The bill also clarifies that the terms for payment and collection of contributions apply to the administrative fee, which will be deposited into the unemployment compensation fund and subsequently into the employment security administration fund. The investment fee rates are also updated to reflect the new calculations for the employer's reserve ratio, ensuring that the fee structure remains 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
Enrolled, 03/10/2025: 61-5-25.6, 61-5-28.1, 61-5-29