Cost to hire an employee in South Dakota
On top of a $50,000 salary, a South Dakota employer pays roughly $4,695 in payroll taxes and insurance before benefits, about 9.4% of wages.
Last verified November 2, 2026. Sources: patriotsoftware.com, oregon.gov.
What a South Dakota employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| South Dakota unemployment (SUTA) | 1.75% new employer 0.08%–9.13% experienced | First $15,000 |
| Workers' compensation | ~$1.13 per $100 | Varies by job class |
Investment fee and administrative fee are included in the rates (new employers pay 0.55% investment fee in year 1)
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,378 | 9.7% | $38,378 |
| $50,000 | $4,695 | 9.4% | $54,695 |
| $75,000 | $6,890 | 9.2% | $81,890 |
| $100,000 | $9,085 | 9.1% | $109,085 |
| $150,000 | $13,475 | 9% | $163,475 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
South Dakota vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| South Dakota | $15,000 | 1.75% | $4,695 |
| Iowa | $20,400 | 1% | $4,676 |
| Minnesota | $44,000 | 1.4% | $5,328 |
| Montana | $47,300 | 1.28% | $5,142 |
| Nebraska | $9,000 | 1.25% | $4,540 |
| North Dakota | $46,600 | 1% | $4,583 |
| Wyoming | $33,800 | 1.69% | $5,143 |
Frequently asked questions
- How much does it cost to hire an employee in South Dakota?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,695 (9.4%), before benefits, for a total of $54,695.
- What is the South Dakota SUTA rate for new employers?
- New employers generally pay 1.75% on the first $15,000 of each employee's wages. Experienced employers pay between 0.08% and 9.13%.
- Do South Dakota employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.