Unemployment insurance tax cut in South Dakota goes into effect January 1

A law (HB 1011) reducing the amount employers contribute to South Dakota’s state unemployment insurance fund by half of a percent (0.5%) goes into effect on January 1, 2024.

Governor Kristi Noem says the law given an $18 million tax cut for businesses. She says South Dakota was the only state to reject additional unemployment benefits offered by the federal government during the COVID pandemic.

In June 2023, South Dakota and New Hampshire broke the national record for the lowest unemployment rate in United States history with a rate of 1.8%. According to the US Bureau of Labor Statistics, the previous record low– reached by multiple states– was 1.9%.