The bill proposes to amend Section 61-5-29 of South Dakota law regarding the employer's investment in South Dakota's future fee. It specifies that employers required to pay contributions, with the exception of those under chapter 61-5A, must also pay this investment fee on wages as defined by the title. The fee rates are established based on the employer's experience rating and are set to change over the years, with specific percentages outlined for different calendar years. Additionally, the bill clarifies that the proceeds from the investment fee will be deposited into the unemployment compensation fund's clearing account and subsequently into the employer's investment fund, while ensuring that no investment fee payments can be credited to the employer's experience-rating account or deducted from employee wages.

Importantly, the bill includes a provision that will repeal Section 61-5-29 entirely on July 1, 2026. This indicates a planned phase-out of the employer's investment fee, signaling a significant change in how employers contribute to the unemployment compensation system in South Dakota. The bill aims to streamline the process and potentially alleviate financial burdens on employers while ensuring that the necessary funds for unemployment compensation are still managed appropriately until the repeal takes effect.

Statutes affected:
Introduced, 01/30/2025: 61-5-29