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



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



(2)  Requirements exist pertaining to estimated tax
payments;



(3)  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 federal Internal Revenue Code;



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



(5)  The individual may elect to have state and local
income taxes deducted and withheld from the individual's payment of
unemployment compensation for other states and localities outside this State at
the percentage established by the state or locality, if the department by
agreement with the other state or locality is authorized to deduct and withhold
income tax; and



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



(b)  Amounts deducted and withheld from
unemployment compensation shall remain in the unemployment compensation fund
until transferred to the federal, state, or local taxing authority as a payment
of income tax.



(c)  The director shall follow all procedures
specified by the United States Department of Labor, the federal Internal
Revenue Service, and the state department of taxation, pertaining to the
deducting and withholding of income tax.



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