Megaphone

It’s easy to switch. We’ll even set you up for free

Free South Dakota payroll tax
calculator (and SD tax rates)

 

Ready to get started?


  • Get Started

  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

We built a payroll calculator South Dakota employers in mind. All you have to do is enter wage and W-4 information for each of your employees into the calculator. Before you know it, you’ll have all the state and federal payroll taxes calculated. Remember, even though South Dakota doesn’t charge a state income tax, you still have to pay unemployment insurance. More on that below.

Federal payroll taxes for South Dakota employers

While a 0% state income tax is saving you from some calculations, you are still responsible for withholding and paying federal payroll taxes. Luckily, our South Dakota payroll calculator is here to assist with calculating your federal withholding and any additional contributions your business is responsible for.

 

Here’s a quick overview of what you need to know when you’re calculating federal payroll taxes. If you would like to see each step in detail, you can click here to read our step-by-step federal income tax guide.

  • Calculate employee gross wages:
    • For all your hourly employees, multiply their hours worked by the pay rate. And don’t forget to increase the rate for any overtime hours worked!
    • For all your employees on salary, divide each employee’s annual salary by the number of pay periods you have.
    • Be sure to add in commissions, bonuses, and tips. They are added to gross wages as well.
  • Subtract pre-tax withholdings (if any):
    • If your employee contributes to a Flexible Spending Account (FSA), 401(k) retirement savings account, or any other eligible pre-tax withholding accounts, subtract the amount from their gross pay prior to applying payroll taxes.
  • Deduct federal income tax:
    • Federal income tax ranges from 0% to 37%. This is the biggest tax of them all. We won’t get into the nitty-gritty in this guide, but you can find all the IRS withholding information you need here.
  • Deduct and match FICA taxes:
    • Social Security Tax: You will need to withhold 6.2% of each employee’s taxable wages up until they have reached a total earning of $168,600 for 2024. As an employer, it is your responsibility to match this tax.
    • Medicare Tax: You will also need to withhold 1.45% of each employee’s taxable wages up until they have reached a total earning of $200,000 for 2024. You will need to match this tax as well. For employees who earn salaries above $200,000, withhold what’s called the Additional Medicare Tax, which is 0.9%. Only the employee is responsible for paying the Additional Medicare Tax.
  • Pay FUTA unemployment tax:
    • You as the employer will pay 6% of each employee’s first $7,000 of taxable income. Employees are not responsible for paying the FUTA tax. Note that if you pay state unemployment taxes in full and on time, you are eligible for a tax credit of up to 5.4%. So be extra diligent here!
  • Subtract post-tax deductions (if any):
    • Not many of your employees will have post-tax deductions, but you may be asked to deduct court-ordered wage garnishments, child support, post-tax contributions to savings accounts, elective benefits, etc.
2024_Q2_SMB_Simplify Growth_Banner_970x250_A

2024 South Dakota state payroll taxes

You already know that the State of South Dakota charges a 0% income tax. And even better, no cities within the state charge a local income tax. It’s definitely nice to have one less thing to worry about.

South Dakota state unemployment insurance (SUI)

As an employer in South Dakota, you are responsible for paying unemployment insurance to the state. In 2023, the rate ranges from 0% all the way up to 9.5% on the first $15,000 in wages paid to each employee in a calendar year. If you’re a new employer, you will pay 1.2%. New construction employers will have to pay 6%. Remember, be sure to pay your SUI in full and on time so you can be eligible for the FUTA tax credit!

 

Compliance consideration

Although purchasing workers’ compensation insurance is not required, the state recommends that businesses do so. Learn more in our employer’s guide to South Dakota workers’ comp and why it is worth investigating.

Cut those paychecks

That’s it! You’ve checked “payroll taxes” off your to-do list so you can focus on growing your business. Once each employee’s net pay is calculated (taking deductions and withholdings into consideration), you’re in the clear. All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and UI taxes. The numbers can add up quickly if you don’t pay close attention to them. You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More details about employment tax due dates can be found here.

Additional South Dakota payroll tax resources:

If all that wasn’t enough, here are a couple more links that can help you become the payroll expert your small business needs you to be!

 

South Dakota Department of Labor & Regulation | Unemployment Insurance Contact (605) 626-2322 | Register Your Business | Unemployment Insurance Information

More South Dakota payroll calculators for employers

Employers can use the South Dakota payroll calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in a few clicks. But sometimes, a business needs to do a little more math before paying its staff. For example, do customers leave tips for your employees? Remember that you are responsible for withholding taxes from your workers’ paychecks based on the tips they receive. Furthermore, if an employee leaves for another company, you’ll need to calculate their final pay. So, if you need a little more help with the number-crunching, check out some of the calculators below.

LET’S DO THIS

It’s easy
to get started

Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.