§ 28-44-58.2 - Voluntary withholding of income taxes.
SECTION 28-44-58.2
§ 28-44-58.2 Voluntary withholding ofincome taxes. – (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 stateincome tax and requirements exist pertaining to estimated tax payments;
(2) The individual may elect to have federal income taxdeducted and withheld from unemployment compensation paid at the rate specifiedin the federal Internal Revenue Code, 26 U.S.C. § 1 et seq.;
(3) The individual may elect to have state income taxdeducted and withheld from unemployment compensation paid at the rateestablished by the state tax administrator;
(4) The individual shall be permitted to change a previouslyelected withholding status only once during a benefit year.
(b) Amounts deducted and withheld from unemploymentcompensation for income taxes shall remain in the employment security funduntil transferred to the federal or state taxing authority as a payment ofincome tax.
(c) Amounts may be deducted and withheld under this sectiononly after amounts are deducted and withheld for any overpayments ofunemployment compensation, child support obligations or any other amountsrequired to be deducted and withheld under the provisions of chapters 42 –44 of this title.
(d) The director shall follow all procedures specified by theUnited States Department of Labor and the federal Internal Revenue Servicepertaining to the deducting and withholding of income tax.