23-792

23-792. Voluntary withholding; income
tax

A. An individual filing a new claim for unemployment compensation shall, at the
time of filing the claim, be advised:

1. That unemployment compensation is subject to federal and state tax.

2. Of the existence of requirements pertaining to estimated tax payments.

3. That the individual may elect to have federal income tax deducted and withheld
from the individual's payment of unemployment compensation at the amount specified in the
United States internal revenue code.

4. That the individual may elect to have state income tax deducted and withheld
from the individual's payment of unemployment compensation at the rate of ten per cent of
the amount withheld for federal income tax. The election shall be in writing.

5. That the individual shall be permitted to change a previously elected
withholding status.

B. Amounts deducted and withheld from the payment of unemployment compensation
shall be held in the unemployment compensation fund until transferred to the taxing
authorities.

C. The department shall follow all procedures specified by the United States
department of labor, the United States internal revenue service and the Arizona
department of revenue pertaining to the deducting and withholding of income tax.

D. Amounts shall 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 this chapter.