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By July 10, 2019No Comments

South Dakota has changed that name of their Unemployment Insurance (UI) program to Reemployment Assistance (RA). This is a result of HB 1035 which passed during the 2019 legislative session. The change went into effect on July 1st.

The bill made no changes to the administration of unemployment in the state, such as collection of taxes or payment of benefits.

“The intent of the name change is to focus efforts on assisting individuals while they find new employment, more accurately reflecting the program’s goal,” said state Labor and Regulation Secretary Marcia Hultman.

The UI program provides temporary weekly benefits to people who have lost their job through no fault of their own. Benefits are not meant to replace total wages lost, but to
assist with basic necessities.

“This support is to assist individuals while they are seeking a new job,” said Secretary Hultman. “This subtle name change reinforces our philosophy of helping people reenter
the workforce as quickly as possible.”

South Dakota’s UI program is financed by employers through payroll taxes. Workers do not contribute to this plan.

Nonprofits Have Other Options

501(c)(3)s do not have to pay state unemployment insurance taxes – high or low. Even with decreases in unemployment insurance taxes, many organizations are overpaying their unemployment liability. Recent analysis of 501(c)(3) employers reveals that 86% are overpaying into their state fair rating on their unemployment insurance program.

You can calculate your organization’s unemployment insurance overpayment at

Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.

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