labor lawAdivision of labor law center

In January 2007, the South Dakota Department of Labor mailed out the 1099 forms, which is a regular practice. It is a document that records an individual’s unemployment earnings, state and federal taxes withheld, and any other related information. The addressees are supposed to get then by mid-February, latest. They are supposed to attach the form with their federal tax returns. A copy is also needed for state tax purposes.

During the year 2006, millions of dollars were paid as South Dakota unemployment benefits. South Dakota Unemployment benefit is considered taxable income under both state and federal laws.

About fifty percent of the people who were the beneficiaries of South Dakota unemployment insurance had their taxes withheld. The amount of withheld taxes exceeded $6 million. These numbers reflect regular unemployment insurance payments, Trade/Readjustment Assistance and any extensions to unemployment benefits for special circumstances.

If someone does not receive the form 1099 in time, he or she should contact the nearest office of the South Dakota Department of Labor, and request a duplicate. The department would then verify the applicant’s contact information to determine the reason why the form never reached the addressee. Then, a duplicate form 1099 would be sent again. If relevant information regarding previous years is needed, that too can be accessed.

Recently, a source at the South Dakota Department of Labor said, “Unemployment Insurance benefits not only help workers get by during times of unemployment, it helps stimulate our South Dakota economy.”

He expanded further on his statement by adding, “With more than $111 million in benefits going out during the year, our state has given significant assistance to both workers and employers in 2006.” From this statement, one would be right in inferring that the Department of Labor’s policies regarding unemployment benefits are proving to be effective.