Department of Labor and Regulation

Unemployment Insurance

Unemployment Insurance Benefits - Deductions from Benefits

Can I work part of the week and still be eligible for benefits?

Do I need to notify the Unemployment Insurance Division if my job ends?

Do I need to report my self-employment?

Are things like vacation pay and severance pay deductible from my benefits?

Are pensions deductible?

Can I work part of the week and still be eligible for benefits?

Yes, if you are still seeking full-time work, your earnings do not exceed your weekly benefit amount and you worked less than 40 hours for the week, you may be eligible for partial benefits. Each week when you file your weekly certification, you must report the hours you worked and your gross earnings. Earnings may reduce your benefits.

Additional information on reporting work and earnings

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Do I need to notify the Unemployment Insurance Division if my job ends?

Yes, if at any time during your benefit year you return to work and then separate from the job, you must call a telephone claims representative immediately to reopen your claim. You can reopen your claim online at www.sd.uiclaims.com or by contacting the Call Center at 605.626.3179. Claims do not have to be reopened if you are doing occasional work for your regular employer. You must report your hours and gross earnings each week.

Your reopened claim is effective from the first day of the week in which you file the claim. You will lose benefits if you do not reopen your claim immediately after you separate from employment. Reopen your claim online at www.sd.uiclaims.com or contact the Call Center at 605.626.3179

Your eligibility for benefits will be based on the reason you separated from the employment.

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Do I need to report my self-employment?

Yes. You must report any hours and, in some cases, earnings from self-employment for the week in which the work was done, whether payment has been received or not.

To be self-employed means earning income directly from your own business, trade, profession or service rather than as wages or earnings from an employer. The fact that your business has no taxable income, or even a loss, does not mean hours or earnings need not be reported. Contact the Benefit Section at 605.626.2452 for help.

If you do sales work on a commission basis, the hours you work each week, as well as your gross earnings, must be reported. If you work full time, you will be considered fully employed and not eligible for benefits.

Additional information on how to report your self-employment

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Are things like vacation pay and severance pay deductible from my benefits?

Yes, other payments you may receive are deducted on a dollar-for-dollar basis from your benefits and must be reported on your weekly claim form. Payments that are deductible include:

  • Vacation Pay
  • Annual Leave Pay
  • Wages in Lieu of Notice
  • Temporary/Partial Workers' Compensation
  • Severance Pay
  • Holiday Pay
  • Back Pay
  • Termination Pay
  • Dismissal Pay
  • Sick Leave Pay

Additional information on reporting deductible income

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Are pensions deductible?

Pensions, annuities and retirement payments are deductible if earned with a base period employer. However, only that portion of the pension, annuity or retirement payment which is based on payments made by the employer is deductible from your benefits.

Additional information on pension reporting

Military-service-connected disability payments are not deductible from your benefits.

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If you have any questions about whether an item is deductible, contact the Benefits Section at 605.626.2452. Failure to report a deductible item or report it properly may result in an overpayment which you will be required to repay.


Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184