2023 South Dakota Codified Laws › Title 61 - Reemployment Assistance › Chapter 05 - Employers' Contributions And Accounts › Section 61-5-28 - Increase in all employers' rate on reduction of amount in the unemployment compensation fund--Application and duration of rate--Amount payable.

61-5-28. Increase in all employers' rate on reduction of amount in the unemployment compensation fund--Application and duration of rate--Amount payable.
If on the last day of any calendar quarter through December 31, 2023, the amount in the unemployment compensation fund, as established by §61-4-1, including amounts receivable as federal reimbursements due the state for shareable benefit payments, is less than any amount appearing in Column A below, then all employers' rates shall be increased by the amount appearing in Column B opposite the lowest amount in Column A under which the fund has been reduced:
Column "A"
Column "B"
Balance in Fund
Rates
$11,000,000
0.1 %
10,500,000
0.2 %
10,000,000
0.3 %
9,500,000
0.4 %
9,000,000
0.5 %
8,500,000
0.6 %
8,000,000
0.7 %
7,500,000
0.8 %
7,000,000
0.9 %
6,500,000
1.0 %
6,000,000
1.25%
5,500,000
1.5 %
If on the last day of any calendar quarter beginning January 1, 2024, the average high cost multiplier ratio ("AHCM"), as defined in §61-5-25, calculated on the amount in the unemployment compensation fund, as established by §61-4-1, including amounts receivable as federal reimbursements due the state for shareable benefit payments, is less than any ratio appearing in Column A below, then all employers' rates must be increased by the amount appearing in Column B opposite the lowest amount in Column A under which the fund has been reduced:
Column "A"
Column "B"
Balance in Fund
Rates
AHCM between 0.60 and 0.75
AHCM between 0.50 and 0.59
AHCM between 0.40 and 0.49
AHCM between 0.30 and 0.39
AHCM between 0.20 and 0.29
AHCM between 0.00 and 0.19
AHCM less than 0.00
0.1%
0.2%
0.3%
0.4%
0.5%
1.0%
1.5%
The increased contribution rates apply to taxable wages paid on and after the first day of the immediately following calendar quarter. The rates remain in effect until the balance in the unemployment fund on the last day of any quarter through December 31, 2023, is between $11,000,000 and $16,500,000. The increased rate must be one-tenth of one percent if the balance in the fund is between $11,000,000 and $16,500,000. Beginning January 1, 2024, the rates remain in effect until the balance in the unemployment fund on the last day of any quarter is greater than the highest ratio appearing in Column A. The increased rate is one-tenth of one percent if the balance is more than the highest average high cost multiplier ratio appearing in Column A but less than an average high cost multiplier ratio of 1.0. However, under no circumstances may any employer be required to pay contributions at a rate, including the adjustment percentage, of more than twelve percent. Any rate increase based on this section remains in effect for four consecutive calendar quarters. The rate for the second, third, and fourth quarters may increase based on the fund balance on the last day of the immediately prior quarter but may not decrease from the prior quarter during the four consecutive quarters.
The computation date and experience rating account balance used to determine contribution rates must be used in the application of this section. Any payments must be credited to the experience rating account of the employer. However, if amounts paid under this section are used to pay interest on advances made to the state from the federal unemployment account in the federal Unemployment Trust Fund under 42 U.S.C. §1321 (2004), these amounts may not be credited to an employer's experience rating account.
The contribution rates provided in this section apply to and are retroactive to taxable wages paid on and after January 1, 2010.
Source: SDC 1939, §17.0822 (2) (b) (3) as added by SL 1961, ch 106, §2; SL 1971, ch 276, §40; SL 1979, ch 349, §2; SL 1981, ch 369, §3; SL 1982, ch 371, §4; SL 1983, ch 381, §4; SL 2005, ch 280, §1; SL 2006, ch 267, §5; SL 2010, ch 247, §4, eff. Mar. 10, 2010; SDCL §61-5-23; SL 2012, ch 252, §59; SL 2023, ch 171, §4.