(a) An individual filing a new claim for unemployment insurance benefits shall, at the time of filing such claim, be advised that:
(1) Unemployment insurance benefits are subject to federal, state and local income tax;
(2) Requirements exist pertaining to estimated tax payments;
(3) The individual may elect to have federal income tax deducted and withheld from the individual's payment of unemployment insurance benefits at the amount specified in the federal Internal Revenue Service Code; and
(4) The individual shall be permitted to change a previously elected withholding status no more than once during a claim benefit year.
(b) Amounts deducted and withheld from unemployment insurance benefits shall remain in the Unemployment Insurance Trust Fund until transferred to the federal taxing authority as a payment of income tax.
(c) The Director of Unemployment Insurance shall follow all procedures specified by the United States Department of Labor and the federal Internal Revenue Service pertaining to the deducting and withholding of income tax.
(d) Amounts deducted and withheld from unemployment insurance benefits for federal income tax shall be deducted and withheld only after amounts are deducted and withheld in the deduction priority established by the Director of Unemployment Insurance for any overpayments, child support obligations, food stamp over-issuances or any other amounts required to be deducted and withheld under this title.
(e) The provisions of this section relating to the voluntary deduction and withholding of federal income tax from unemployment insurance benefits shall apply to benefit payments made on or after January 1, 1997.