ENTITLED An Act to revise employer contribution rates.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 61-5-25 be AMENDED:
61-5-25. If an employer has met the requirements of 61-5-24 on the computation date for the year, then the employer's contribution rate shall be the rate appearing in Column "A" on the same line the employer's reserve ratio appears in Column "B" of the rate schedule applicable to that year. The computation date for calendar year 2012 and each year thereafter is June thirtieth of the preceding year.
The rate schedule for each calendar year shall be determined based upon the South Dakota average high cost multiplier ratio. The average high cost multiplier ratio is calculated by dividing the amount in the unemployment compensation fund, as established by 61-4-1, as of June thirtieth of the preceding year, by the amount required in the unemployment compensation fund that equals the average high cost multiple of 1.0, as of December thirty-first of the last completed calendar year. The following rate schedules apply:
(1) From January 1, 2018, to December 31, 2023, inclusive:
(a) Schedule A is in effect for any calendar year when the South Dakota average high cost multiplier ratio is less than 1.60; and
(b) Schedule B is in effect for any calendar year when the South Dakota average high cost multiplier ratio is greater than or equal to 1.60.
(2) Beginning January 1, 2024:
(a) Schedule A is in effect for any calendar year when the South Dakota average high cost multiplier ratio is less than 1.30;
(b) Schedule B is in effect for any calendar year when the South Dakota average high cost multiplier ratio is less than 1.50 and greater than or equal to 1.30; and
(c) Schedule C is in effect for any calendar year when the South Dakota average high cost multiplier ratio is greater than or equal to 1.50.
For purposes of this section, the term, average high cost multiple, has the same meaning given in 20 C.F.R. 606.3, as amended on September 17, 2010. An amount equal to an average high cost multiple of 1.0 is a federal measure of adequate reserves in relation to the state's current economy.
Section 2. That 61-5-25.5 be AMENDED:
61-5-25.5. The employer's reserve ratio for calendar year 2020 to end of calendar year 2023 is the result of the balance of credits existing in the employer's experience-rating account as of June thirtieth preceding the year the rate is to be calculated, divided by the total taxable payroll of the employer for the preceding three fiscal years. The employer's experience-rating account balance for the purpose of this section is the balance on July thirty-first of the year preceding the year rates are calculated and is the difference between the contributions paid through July thirty-first and the benefits paid through the preceding June thirtieth.
Column "A" |
Column "B" |
|
Contribution Rate |
Reserve Ratio |
|
Schedule A |
Schedule B |
|
9.45% |
9.30% |
Less than -7.00% |
8.95% |
8.80% |
-7.00% and Less than -6.50% |
8.45% |
8.30% |
-6.50% and Less than -6.00% |
7.95% |
7.80% |
-6.00% and Less than -5.50% |
7.45% |
7.30% |
-5.50% and Less than -5.00% |
6.95% |
6.80% |
-5.00% and Less than -4.50% |
6.45% |
6.30% |
-4.50% and Less than -4.00% |
5.95% |
5.80% |
-4.00% and Less than -3.50% |
5.45% |
5.30% |
-3.50% and Less than -3.00% |
4.95% |
4.80% |
-3.00% and Less than -2.50% |
4.45% |
4.30% |
-2.50% and Less than -2.00% |
3.95% |
3.80% |
-2.00% and Less than -1.50% |
3.45% |
3.30% |
-1.50% and Less than -1.00% |
2.95% |
2.80% |
-1.00% and Less than -0.75% |
2.45% |
2.30% |
-0.75% and Less than -0.50% |
1.95% |
1.80% |
-0.50% and Less than -0.25% |
1.45% |
1.30% |
-0.25% and Less than 0.00% |
0.95% |
0.80% |
0.00% and Less than 0.50% |
0.70% |
0.55% |
0.50% and Less than 0.75% |
0.55% |
0.40% |
0.75% and Less than 1.00% |
0.35% |
0.20% |
1.00% and Less than 1.25% |
0.25% |
0.10% |
1.25% and Less than 1.50% |
0.15% |
0.00% |
1.50% and Less than 1.75% |
0.05% |
0.00% |
1.75% and Less than 2.25% |
0.00% |
0.00% |
|
The contribution rates provided in this section apply to taxable wages paid on and after January 1, 2020, to December 31, 2023, inclusive.
Section 3. That chapter 61-5 be amended with a NEW SECTION:
The employer's reserve ratio for calendar year 2024 and each year thereafter is the result of the balance of credits existing in the employer's experience-rating account as of June thirtieth preceding the year the rate is to be calculated, divided by the total taxable payroll of the employer for the preceding three fiscal years. The employer's experience-rating account balance for the purpose of this section is the balance on July thirty-first of the year preceding the year rates are calculated and is the difference between the contributions paid through July thirty-first and the benefits paid through the preceding June thirtieth.
Column "A" |
Column "B" |
|||
Contribution Rate |
Reserve Ratio |
|||
Schedule A |
Schedule B |
Schedule C |
|
|
9.45% |
9.30% |
8.80% |
Less than -7.00% |
|
8.95% |
8.80% |
8.30% |
-7.00% and Less than -6.50% |
|
8.45% |
8.30% |
7.80% |
-6.50% and Less than -6.00% |
|
7.95% |
7.80% |
7.30% |
-6.00% and Less than -5.50% |
|
7.45% |
7.30% |
6.80% |
-5.50% and Less than -5.00% |
|
6.95% |
6.80% |
6.30% |
-5.00% and Less than -4.50% |
|
6.45% |
6.30% |
5.80% |
-4.50% and Less than -4.00% |
|
5.95% |
5.80% |
5.30% |
-4.00% and Less than -3.50% |
|
5.45% |
5.30% |
4.80% |
-3.50% and Less than -3.00% |
|
4.95% |
4.80% |
4.30% |
-3.00% and Less than -2.50% |
|
4.45% |
4.30% |
3.80% |
-2.50% and Less than -2.00% |
|
3.95% |
3.80% |
3.30% |
-2.00% and Less than -1.50% |
|
3.45% |
3.30% |
2.80% |
-1.50% and Less than -1.00% |
|
2.95% |
2.80% |
2.30% |
-1.00% and Less than -0.75% |
|
2.45% |
2.30% |
1.80% |
-0.75% and Less than -0.50% |
|
1.95% |
1.80% |
1.30% |
-0.50% and Less than -0.25% |
|
1.45% |
1.30% |
0.80% |
-0.25% and Less than 0.00% |
|
0.95% |
0.80% |
0.30% |
0.00% and Less than 0.50% |
|
0.70% |
0.55% |
0.05% |
0.50% and Less than 0.75% |
|
0.55% |
0.40% |
0.00% |
0.75% and Less than 1.00% |
|
0.35% |
0.20% |
0.00 | ||