61-5-47. Knowing violation or attempted violation of § 61-5-46 related to determining contribution rate assignment as misdemeanor--Additional penalties.

If a person knowingly violates or attempts to violate provisions of § 61-5-46 related to determining the assignment of a contribution rate, or if a person knowingly advises another person in a way that results in a violation of such provision, the person is guilty of a Class 1 misdemeanor. In addition, the person is subject to the following penalties:

(1)    If the person is an employer, the employer shall be assigned the highest rate assignable under this chapter for the rate year during which the violation or attempted violation occurred and the three rate years immediately following this rate year. However, if the person's business is already at the highest rate for any year, or if the amount of increase in the person's rate would be less than two percent for the year, then a penalty rate of contributions of two percent of taxable wages shall be imposed for such year; or

(2)    If the person is not an employer, the person is subject to a civil penalty of not more than five thousand dollars. Any such fine shall be deposited in the penalty and interest account established under § 61-3-28.

For purposes of this section, the term, knowingly, means having actual knowledge of or acting with deliberate ignorance or reckless disregard for the prohibition involved.

Source: SL 2005, ch 281, § 3; SDCL § 61-5-32.2; SL 2012, ch 252, § 59.