S.D. Admin. R. 64:06:02:89.01
Each professional employer organization, doing business in South Dakota, must be approved by the Department as a professional employer organization, as defined in SDCL 10-45-97 and § 64:06:02:89. The professional employer organization must apply in writing to the secretary on a form provided by the secretary. The form shall contain the applicant's name and address and client's name and address. A copy of the contract between the professional employer organization and the client must be filed with the form.
If a professional employer organization does not meet the qualifications of SDCL 10-45-97 and § 64:06:02:89 the organization will be required to pay sales tax on all fees charged between the organization and the client with no deduction for actual disbursements, including appropriate reserves, for the wages, salaries, payroll taxes, payroll deductions, workers' compensation costs, insurance premiums, welfare benefits, retirement benefits, and other employee benefits of its co-employees, unless otherwise exempt pursuant to SDCL chapter 10-45.
S.D. Admin. R. 64:06:02:89.01
General Authority: SDCL 10-45-47.1(3).
Law Implemented: SDCL 10-45-96, 10-45-97.