This week’s question comes from Kevin, a business owner. We’ve been charged an employer surcharge in South Dakota for the first three quarters of 2010. What is the status of the South Dakota employer surcharge for Q4 2010? Answer: An employer surcharge is not in effect for Q4 2010 in South Dakota.

UI Trust Fund Balance Determines if Surcharge Is in Effect

The surcharge automatically goes into effect when the UI Trust Fund balance is below $11 million at the end of any quarter. The balance was $27.7 million on September 30, 2010.

No Surcharge Projected for Q1 2011

The South Dakota Department of Labor projects that the Trust Fund balance will be $25 million on December 31, 2010, so the surcharge would not be in effect for the first quarter of 2011.

Contact Vision Payroll for Further Information

Contact Vision Payroll for further questions on the South Dakota employer surcharge.