Filing; income taxes
Sec. 2.5. (a) When an individual files an initial claim, the
individual shall be advised of the following:
(1) Unemployment compensation is subject to federal, state, and
local income taxes.
(2) Requirements exist concerning estimated tax payments.
(3) After December 31, 1996, the individual may elect to have
income taxes withheld from the individual's payment of
unemployment compensation. If an election is made, the
department shall make the following withholdings for federal,
state, and local income taxes:
(A) Federal income tax will be withheld by the department
at the applicable rate provided in the Internal Revenue Code.
(4) An individual is allowed to change an election made under
this section.
(b) Money withheld from unemployment compensation under this
section shall remain in the unemployment fund until transferred to
the federal taxing authority for payment of income taxes.
(c) The commissioner shall follow all procedures of the United
States Department of Labor and the Internal Revenue Service
concerning the withholding of income taxes.
(d) Money shall be deducted and withheld in accordance with the
priorities established in regulations developed by the commissioner.
As added by P.L.166-1996, SEC.4.
Last modified: May 27, 2006