James Postma CPA

550 N 5th St, Ste 309

Rapid City, SD 57701

(605) 343-7700

Monday - Friday: 8 AM - 5 PM

The South Dakota Department of Labor has come out with clarifications on Unemployment Benefits.  We would like to take this time to update you on the procedures for laying off employees and for their eligibility for receiving benefits. We will attach several items for your reference. Please be advised, per pending Federal Legislation, which as of the date of this letter, has not been signed into law, there will be payroll related benefits applying to employers which could influence your decision on whether to layoff any or all your employees. We will update you as we receive further information.

However, should you choose at this point to proceed with laying off employees, here are the guidelines that you must follow per the SD Department of Labor. 

Each employee who has been laid off or has a reduction in hours due to the COVID-19 virus, must receive a letter. Please see the attachment labelled “Layoff Letter” for a list of items that need to be in the letter. Please email us a copy of the letter you send out to your employees for our records. Please make sure you are including the NOTE portion in your letter.
Sign up for the SIDES program on the DLR website in order to receive your notices electronically. This will speed up the process. Please fill out the form as soon as possible. https://sd.gov/eformssecure/agencyforms/dlr/UITaxForms/E2239v1-SIDES/E2239v1-SIDES.html

Please be advised that per the attachments, there is a reference to the current maximum weekly South Dakota benefit at $414/Week. The pending federal legislation, would increase this by $600/week, taking the “theoretical” max to $1,014/week. However, that does not mean that any employee would qualify for the maximum amount. It will still be formula driven.

Below is link to the SD Department of Labor for your review that may prove helpful in this journey.