61-5A-1      Reimbursement by state of benefits paid--Share of extended benefits.
61-5A-2      Periodic billing of benefit costs to state--Amount.
61-5A-3, 61-5A-4. Repealed.
61-5A-5      Repealed.
61-5A-5.1      Election of political subdivision to make payments in lieu of contributions--Notice of election.
61-5A-5.2      Election of political subdivisions becoming subject to title.
61-5A-6      Election by nonprofit organization to make payments in lieu of contributions--Minimum period of election.
61-5A-7      Election by newly covered nonprofit organization--Time and minimum period of election.
61-5A-8      Continuation of nonprofit organization's or political subdivision's election until terminated.
61-5A-9      Change by nonprofit organization or political subdivision from contribution to reimbursement of benefits--Minimum period of election.
61-5A-9.1      Nonprofit organization not liable for reimbursed benefits paid to individuals with previously uncovered service.
61-5A-10      Extension of time for election or termination--Retroactive election.
61-5A-11      Notice of department's determinations as to status of nonprofit organization or political subdivision--Reconsideration, appeal, and review.
61-5A-12      Surety bond required of organization paying in lieu of contributions.
61-5A-13      Amount of surety bond.
61-5A-14      Duration of surety bond--Renewal.
61-5A-15      Adjustments in surety bond.
61-5A-16      Liability of surety on bond on failure of organization to pay.
61-5A-17      Termination of election to make payments in lieu of contributions on failure to file bond--Extension of time for filing or adjustment.
61-5A-18      Amount of payments required in lieu of contributions.
61-5A-19      Apportionment of benefits chargeable between employers making contributions and employers making payments in lieu of contributions.
61-5A-20      Apportionment of benefits chargeable between employers making payments in lieu of contributions.
61-5A-21      Group account for employers making payments in lieu of contributions--Duration and termination.
61-5A-22      Apportionment among group members of payments in lieu of contributions.
61-5A-23      Rules governing group accounts.
61-5A-24      Balance in previous experience-rating account used for benefits chargeable to employer making payments in lieu of contributions.
61-5A-25      Method of making payments in lieu of contributions.
61-5A-26      Periodic billing of organization, subdivision, or group making payments in lieu of contributions.
61-5A-27      Request for permission to make payment in lieu of contributions on basis of percentage of payroll.
61-5A-28      Periodic billing for payments in lieu of contributions based on payroll--Percentages applied.
61-5A-29      Annual adjustment of payroll percentages to minimize excess or insufficient payments.

61-5A-1. Reimbursement by state of benefits paid--Share of extended benefits.

In lieu of contributions required by employers under this chapter, the State of South Dakota shall pay into the unemployment compensation trust fund an amount equivalent to the amount of benefits paid based on wages earned with the state plus, prior to December 31, 1978, one-half of the amount of extended benefits paid, and thereafter, the amount of extended benefits paid, to individuals based on wages paid by the state for service defined in § 61-1-13.

Source: SL 1971, ch 276, §§ 70, 71; SDCL Supp, § 61-5A-2; SL 1974, ch 327, § 1; SL 1977, ch 420, § 20; SL 2013, ch 258, § 15.

61-5A-2. Periodic billing of benefit costs to state--Amount.

Within fifteen days after the end of a calendar quarter or such other period as determined by the department, the department shall bill the state for an amount equal to the full amount of benefits including, prior to December 31, 1978, one-half of the amount of extended benefits, and thereafter, the amount of extended benefits, if any, paid during such quarter or other prescribed period that is attributable to service in the employ of the state.

Source: SL 1971, ch 276, § 71; SL 1974, ch 327, § 2; SL 1977, ch 420, § 21.

61-5A-3, 61-5A-4. Repealed by SL 1974, ch 327, § 3.

61-5A-5. Repealed by SL 1977, ch 420, § 38.

61-5A-5.1. Election of political subdivision to make payments in lieu of contributions--Notice of election.

Any political subdivisions of the state which are, or become, subject to this title on January 1, 1978, may elect to become liable for payments in lieu of contributions for a period of not less than two taxable years beginning with January 1, 1978, provided it files with the department a written notice of its election within the thirty-day period immediately following such date.

Source: SL 1977, ch 420, § 22.

61-5A-5.2. Election of political subdivisions becoming subject to title.

Any political subdivision which becomes subject to this title on or after January 1, 1978, may elect to become liable for payments in lieu of contributions for a period of not less than two calendar years beginning with the date on which such subjectivity begins by filing a written notice of its election with the department not later than thirty days immediately following the date of the determination of such subjectivity.

Source: SL 1977, ch 420, § 23.

61-5A-6. Election by nonprofit organization to make payments in lieu of contributions--Minimum period of election.

Any nonprofit organization which is, or becomes, subject to this title on January 1, 1972 may elect to become liable for payments in lieu of contributions for a period of not less than two taxable years beginning with January 1, 1972 provided it files with the department a written notice of its election within the thirty-day period immediately following such date.

Source: SL 1971, ch 276, § 52.

61-5A-7. Election by newly covered nonprofit organization--Time and minimum period of election.

Any nonprofit organization which becomes subject to this title after January 1, 1972 may elect to become liable for payments in lieu of contributions for a period of not less than two calendar years beginning with the date on which such subjectivity begins by filing a written notice of its election with the department not later than thirty days immediately following the date of the determination of such subjectivity.

Source: SL 1971, ch 276, § 53.

61-5A-8. Continuation of nonprofit organization's or political subdivision's election until terminated.

Any nonprofit organization which makes an election in accordance with § 61-5A-6 or 61-5A-7 or any political subdivision which makes an election in accordance with § 61-5A-5.2 will continue to be liable for payments in lieu of contributions until it files with the department a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective.

Source: SL 1971, ch 276, § 54; SL 1977, ch 420, § 24.

61-5A-9. Change by nonprofit organization or political subdivision from contribution to reimbursement of benefits--Minimum period of election.

Any nonprofit organization or political subdivision which has been paying contributions under this title for a period subsequent to January 1, 1972 may change to a reimbursable basis by filing with the department not later than thirty days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election shall not be terminable by the organization for that and the next year.

Source: SL 1971, ch 276, § 55; SL 1977, ch 420, § 25.

61-5A-9.1. Nonprofit organization not liable for reimbursed benefits paid to individuals with previously uncovered service.

Any nonprofit organization which elects to make payments in lieu of contributions into the unemployment compensation fund as provided in § 61-5A-6, 61-5A-7 or 61-5A-9, is not liable to make such payments with respect to the benefits paid to any individual whose base period wages include wages for previously uncovered services as defined in § 61-6-7 to the extent that the unemployment compensation fund is reimbursed for such benefits pursuant to section 121 of Public Law 94-566 as passed October 23, 1976.

Source: SL 1977, ch 420, § 26; SL 2013, ch 258, § 16.

61-5A-10. Extension of time for election or termination--Retroactive election.

The department may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1969.

Source: SL 1971, ch 276, § 56.

61-5A-11. Notice of department's determinations as to status of nonprofit organization or political subdivision--Reconsideration, appeal, and review.

The Department of Labor and Regulation shall notify each nonprofit organization or political subdivision of any determination which it may make of the organization's or political subdivision's status as an employer and of the effective date of any election which it makes and of any termination of election. Determinations are subject to reconsideration, appeal and review in accordance with chapter 61-7.

Source: SL 1971, ch 276, § 57; SL 1977, ch 420, § 27; SL 1983, ch 22, § 12; SL 2011, ch 1 (Ex. Ord. 11-1), § 33, eff. Apr. 12, 2011.

61-5A-12. Surety bond required of organization paying in lieu of contributions.

In the discretion of the department, any nonprofit organization or group of organizations that elects to become liable for payments in lieu of contributions shall be required within thirty days after the effective date of its election, to execute and file with the department a surety bond approved by the department.

Source: SL 1971, ch 276, § 66.

61-5A-13. Amount of surety bond.

The amount of the bond required by § 61-5A-12 is equal to the maximum effective tax rate times the organization's taxable wages paid for employment as defined in §§ 61-1-15 and 61-1-36 for the four calendar quarters immediately preceding the effective date of the election. If the nonprofit organization did not pay wages in each of such four calendar quarters, the amount of the bond shall be as determined by the department.

Source: SL 1971, ch 276, § 67; SL 1973, ch 307, § 1; SL 2013, ch 258, § 17.

61-5A-14. Duration of surety bond--Renewal.

Any bond deposited under § 61-5A-12 shall be in force for a period of not less than two taxable years and shall be renewed with the approval of the department, at such times as the department may prescribe, but not less frequently than at two-year intervals as long as the organization continues to be liable for payments in lieu of contributions.

Source: SL 1971, ch 276, § 68.

61-5A-15. Adjustments in surety bond.

The department shall require adjustments to be made in a previously filed bond as it deems appropriate. If the bond is to be increased, the adjusted bond shall be filed by the organization within thirty days of the date notice of the required adjustment was mailed or otherwise delivered to it.

Source: SL 1971, ch 276, § 68.

61-5A-16. Liability of surety on bond on failure of organization to pay.

Failure by any organization covered by a bond required by § 61-5A-12 to pay the full amount of payments in lieu of contributions when due, together with any applicable interest and penalties provided for in § 61-5A-33, shall render the surety liable on said bond to the extent of the bond, as though the surety was such organization.

Source: SL 1971, ch 276, § 68.

61-5A-17. Termination of election to make payments in lieu of contributions on failure to file bond--Extension of time for filing or adjustment.

If any nonprofit organization fails to file a bond or to file a bond in an increased amount as provided under §§ 61-5A-12 to 61-5A-16, inclusive, the department may terminate such organization's election to make payments in lieu of contributions and such termination shall continue for not less than the four-consecutive-calendar-quarter period beginning with the quarter in which such termination becomes effective; provided, that the department may extend for good cause the applicable filing or adjustment period by not more than thirty days.

Source: SL 1971, ch 276, § 69.

61-5A-18. Amount of payments required in lieu of contributions.

Each employer who is liable for payments in lieu of contributions shall pay to the department for the fund the amount of regular benefits plus, in the case of nonprofit organizations, the amount of one-half of extended benefits paid that are attributable to service in the employ of such employer, or, in the case of the state of South Dakota and political subdivisions, prior to December 31, 1978, the amount of one-half of the extended benefits paid and thereafter the amount of extended benefits paid that are attributable to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the fund by each employer who is liable for such payments shall be determined in accordance with the provisions of §§ 61-5A-19 and 61-5A-20, except as provided in § 61-5A-2.

Source: SL 1971, ch 276, § 43; SL 1977, ch 420, § 28.

61-5A-19. Apportionment of benefits chargeable between employers making contributions and employers making payments in lieu of contributions.

If benefits paid to an individual are based on wages paid by one or more employers who are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer who is liable for payments in lieu of contributions shall be an amount which bears the same ratio to the total benefits payable to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.

Source: SL 1971, ch 276, § 44.

61-5A-20. Apportionment of benefits chargeable between employers making payments in lieu of contributions.

If benefits paid to an individual are based on wages paid by two or more employers who are liable for payments in lieu of contributions, the amount of benefits payable by each such employer shall be an amount which bears the same ratio to the total benefits payable to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.

Source: SL 1971, ch 276, § 45.

61-5A-21. Group account for employers making payments in lieu of contributions--Duration and termination.

Two or more employers who have become liable for payments in lieu of contributions, in accordance with the provisions of §§ 61-5-32 and 61-5A-6 to 61-5A-9, inclusive, may file a joint application to the department for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each such application shall identify and authorize a group representative to act as the group's agent for the purposes of this section. Upon its approval of the application, the department shall establish a group account for such employers effective as of the beginning of the calendar quarter in which it receives the application and shall notify the group's representative of the effective date of the account. Such account shall remain in effect for not less than two years and thereafter until terminated at the discretion of the department or upon application by the group.

Source: SL 1971, ch 276, § 74; SL 2013, ch 258, § 18.

61-5A-22. Apportionment among group members of payments in lieu of contributions.

Upon establishment of the account, each member of the group shall be liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by such member in such quarter bear to the total wages paid during such quarter for service performed in the employ of all members of the group.

Source: SL 1971, ch 276, § 74.

61-5A-23. Rules governing group accounts.

The department may promulgate rules pursuant to chapter 1-26 governing applications for establishment, maintenance and termination of group accounts that are authorized by § 61-5A-21, for addition of new members to, and withdrawal of active members from, the accounts, and for the determination of the amounts that are payable under § 61-5A-22 by members of the group and the time and manner of such payments.

Source: SL 1971, ch 276, § 74; SL 1993, ch 375, § 31.

61-5A-24. Balance in previous experience-rating account used for benefits chargeable to employer making payments in lieu of contributions.

Notwithstanding any provisions in this chapter, any nonprofit organization that prior to January 1, 1969, paid contributions required by chapter 61-5, and, pursuant to § 61-5A-6 or 61-5A-7, elects within thirty days after the effective date of such section, to make payments in lieu of contributions, shall not be required to make any such payment on account of any regular or extended benefits paid, on the basis of wages paid by such organization to individuals for weeks of unemployment which begin on or after the effective date of such election until the total amount of such benefits equals the amount of the positive balance in the experience-rating account of such organization.

Source: SL 1971, ch 276, § 75.

61-5A-25. Method of making payments in lieu of contributions.

Payments in lieu of contributions shall be made in accordance with the provisions of §§ 61-5A-26 to 61-5A-29, inclusive.

Source: SL 1971, ch 276, § 58.

61-5A-26. Periodic billing of organization, subdivision, or group making payments in lieu of contributions.

At the end of each calendar quarter, or at the end of any other period as determined by the department, the department shall bill each nonprofit organization, political subdivision, or group of such organizations which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus, in the case of a nonprofit organization, one-half of the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the employ of such organization or, in the case of a political subdivision, prior to December 31, 1978 one-half of the amount of extended benefits and thereafter the amount of extended benefits paid during such quarter or other prescribed period that is attributable to service in the competent employ of such organization.

Source: SL 1971, ch 276, § 59; SL 1977, ch 420, § 29.

61-5A-27. Request for permission to make payment in lieu of contributions on basis of percentage of payroll.

Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as provided in §§ 61-5A-28 and 61-5A-29. Such method of payment shall become effective upon approval by the department.

Source: SL 1971, ch 276, § 60.

61-5A-28. Periodic billing for payments in lieu of contributions based on payroll--Percentages applied.

At the end of each calendar quarter, or at the end of such other period as determined by the department, the department shall bill each nonprofit organization for an amount representing one of the following:

(1)    For 1972, two-tenths of one percent of its total payroll for 1971 on a prorated basis;

(2)    For years after 1972, such percentage of its total payroll for the immediately preceding calendar year as the department shall determine. Such determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year;

(3)    For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the department shall determine.

Source: SL 1971, ch 276, § 60.

61-5A-29. Annual adjustment of payroll percentages to minimize excess or insufficient payments.

At the end of each taxable year, the department may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.

Source: SL 1971, ch 276, § 60.

61-5A-30. Redetermination of amount of payments billed to organization.

The amount due specified in any bill from the department shall be conclusive on the organization unless, not later than fifteen days after the bill was mailed to its last known address or otherwise delivered to it, the organization files an application for redetermination or an appeal to the department, setting forth the grounds for such application or appeal. The department shall promptly review and reconsider the amount due specified in the bill and shall thereafter issue a redetermination in any case in which such application for redetermination has been filed.

Source: SL 1971, ch 276, § 64.

61-5A-31. Time of payment of bill for payments in lieu of contributions.

Payment of any bill rendered under §§ 61-5A-26 to 61-5A-29, inclusive, shall be made not later than thirty days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination in accordance with § 61-5A-30.

Source: SL 1971, ch 276, § 62.

61-5A-32. Annual adjustment of payments in lieu of contributions--Payment of deficiency--Refund or retention of excess.

At the end of each taxable year, the department shall determine whether the total of payments for such year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with § 61-5A-31. If the total payments exceed the amount so determined for the taxable year, all or a part of the excess, may, at the discretion of the department, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year.

Source: SL 1971, ch 276, § 61.

61-5A-33. Interest and penalties on past due payments in lieu of contributions.

Past due payments of amounts in lieu of contributions or failure to make timely reports shall be subject to the same interest and penalties that apply to past due contributions and reports in §§ 61-5-57 and 61-5-58.

Source: SL 1971, ch 276, § 65; SL 2013, ch 258, § 19.

61-5A-34. Payments in lieu of contributions not to be deducted from wages.

Payments made by any nonprofit organization or political subdivision under the provisions of §§ 61-5A-25 to 61-5A-33, inclusive, shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization or political subdivision.

Source: SL 1971, ch 276, § 63; SL 1977, ch 420, § 30.