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Cost of hiring an employee in South Dakota

A full-time hire at $18/hour costs about $41,032 a year before benefits — $20.52 per hour actually worked with 10 days off.

Last updated October 28, 2026 · 2026 rates

SUTA new-employer rate
1.75%
incl. surcharges
SUTA wage base
$15,000
verified
Minimum wage
$11.85
verified
Workers' comp (typical)
$1.13/$100
rank 22/51 (1 = priciest)

DOL base 1.2%; 1.75% incl. investment fee (secondary).

1About the hire

Adjust tax rates (from your notices or quotes)

2What this employee costs you

Frequently asked questions

How much does it cost to hire an employee in South Dakota?

A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $41,032 a year before benefits: employer payroll tax $2,864, FUTA $42, South Dakota unemployment $263 and typical workers' comp $423. That's $20.52 per hour worked.

What is the South Dakota SUTA rate for new employers in 2026?

1.75% on the first $15,000 of each employee's wages (includes state surcharges per a secondary source; base rate per DOL 1.2%). DOL base 1.2%; 1.75% incl. investment fee (secondary).

What is the South Dakota minimum wage in 2026?

$11.85 per hour.

How much is workers' comp in South Dakota?

The 2024 Oregon premium-rate study puts South Dakota's all-industry index rate at $1.13 per $100 of payroll (rank 22 of 51; national median $1.09). Your real rate depends on job class and claims history.

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