(a) An individual filing a new claim for benefits on or after January 1, 1998, shall, at the time of filing that claim, be advised that:
(1) Unemployment compensation is subject to federal and state income tax and requirements exist pertaining to estimated tax payments;
(2) The individual may elect to have federal income tax deducted and withheld from unemployment compensation paid at the rate specified in the federal Internal Revenue Code, 26 U.S.C. § 1 et seq.;
(3) The individual may elect to have state income tax deducted and withheld from unemployment compensation paid at the rate established by the state tax administrator;
(4) The individual shall be permitted to change a previously elected withholding status only once during a benefit year.
(b) Amounts deducted and withheld from unemployment compensation for income taxes shall remain in the employment security fund until transferred to the federal or state taxing authority as a payment of income tax.
(c) Amounts may be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations or any other amounts required to be deducted and withheld under the provisions of chapters 42 — 44 of this title.
(d) The director 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.
History of Section.
P.L. 1997, ch. 33, § 3.