[§383-163.6]  Voluntary deduction andwithholding of federal and state income taxes.  (a)  An individual filing anew claim for unemployment compensation shall, at the time of filing the claim,be advised that:

(1)  Unemployment compensation is subject to federaland state income tax;

(2)  Requirements exist pertaining to estimated taxpayments;

(3)  The individual may elect to have federal incometax deducted and withheld from the individual's payment of unemploymentcompensation at the amount specified in the federal Internal Revenue Code;

(4)  The individual may elect to have state income taxdeducted and withheld from the individual's payment of unemploymentcompensation at the amount specified in section 235-69;

(5)  The individual may elect to have state and localincome taxes deducted and withheld from the individual's payment ofunemployment compensation for other states and localities outside this State atthe percentage established by the state or locality, if the department byagreement with the other state or locality is authorized to deduct and withholdincome tax; and

(6)  The individual shall be permitted to change apreviously elected withholding status no more than once during a benefit year.

(b)  Amounts deducted and withheld fromunemployment compensation shall remain in the unemployment compensation funduntil transferred to the federal, state, or local taxing authority as a paymentof income tax.

(c)  The director shall follow all proceduresspecified by the United States Department of Labor, the federal InternalRevenue Service, and the state department of taxation, pertaining to thededucting and withholding of income tax.

(d)  Amounts shall be deducted and withheldunder this section only after any other amounts allowed under chapter 383 arededucted and withheld. [L 1996, c 157, §2]