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 contribution rates for taxable wages will apply from January 1, 2024, to December 31, 2025, and a new section establishes the contribution rates for taxable wages starting January 1, 2026.

Additionally, the bill increases the administrative fee rate for employers eligible for experience rating. For the years 2024 and 2025, if an employer's reserve ratio is below 2.25%, they will pay an administrative fee of 0.02%. However, 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, the investment fee rates are 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