The state of South Dakota does not collect any state income tax. For more information please visit http://www.realtaxtools.com/payrollsoftware/South%20Dakota-Payroll-Software.html
Also, we recommend you contact the South Dakota Department of Revenue to check to see if any local taxes pertain to your employee. If there is you can create new tax, income and deduction categories under the Company tab.
Let me walk you through the process of creating a new local tax type for an employee:
1. Start by going to the Company Setup. You can do that by clicking on the “Company” button on the left side of the application.
2. Now Click on the “Tax Categories” Button.
3. Click on Add to create a new Tax Category.
4. Fill in the different fields. Below are suggested values:
a. Title: School Tax.
b. Abbreviation: School Tax.
c. Calculation: Fill in the way you will calculate this deduction..
e. Press OK to finish.
5. Go to the employees list by clicking the “Employees” button on the left side of the application.
6. Select the employees who have to pay this tax and click Edit.
7. Click Next until you reach the “Taxes” Page, you should see the tax you added as one of the listed taxes. Make sure you check the box next to it. Click Next and then Finish to finalize your changes.