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, and introduces a new calculation for 2026 and beyond. The employer's reserve ratio will continue to 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. The bill also establishes that contribution rates for taxable wages will apply from January 1, 2024, to December 31, 2025, and from January 1, 2026, onwards.

Additionally, the bill increases the administrative fee rate for employers eligible for experience rating. For the years 2024 through 2025, employers with a reserve ratio below 2.25% will pay an administrative fee of 0.02%, while starting in 2026, this fee will increase to 0.08%. 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 not credited to the employer's experience rating account. Furthermore, it amends the investment fee structure for employers, ensuring that the fee rates are consistent with the updated reserve ratio calculations.

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