What tax forms are required for new hires?

Tax Forms Required for New Hires in South Dakota

When hiring employees in South Dakota, it is essential to collect and manage specific tax forms to ensure proper payroll processing and compliance with federal and state regulations.

Key Tax Forms for New Employees

• Form W-4 (Employee's Withholding Certificate): This federal form determines the correct federal income tax withholding from an employee’s paycheck. South Dakota does not impose a state income tax, so no additional state withholding form is required.
• Form I-9 (Employment Eligibility Verification): While not a tax form, it is mandatory for verifying the employee’s eligibility to work in the U.S. This form must be completed and retained by the employer.
• South Dakota New Hire Reporting: Employers must report all new hires to the South Dakota New Hire Reporting Center within 20 days of the hire date. This supports child support enforcement and other state programs but does not involve a form provided to the employee.

Operational Considerations

• Payroll Setup: Use the information from Form W-4 to configure payroll withholding accurately.
• Recordkeeping: Maintain copies of W-4 and I-9 forms securely as part of employee records for at least the minimum periods required by federal regulations.
• Automation: Consider using payroll software that supports electronic W-4 submission and automatic new hire reporting to South Dakota.

As of 2026, South Dakota does not require a state income tax withholding form, simplifying tax form management for employers. However, compliance with federal tax and employment eligibility forms remains critical.