§ 22-4-17-2.5 — Filing; income taxes

Indiana § 22-4-17-2.5

• Jurisdiction: Indiana
• Art. 4: UNEMPLOYMENT COMPENSATION SYSTEM
• Ch. 17: Claims for Benefits

Text

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) 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 withhold federal income
tax at the applicable rate provided in the Internal Revenue Code.
(4) After December 31, 2011, the individual may elect to have
state adjusted gross income tax imposed under IC 6-3 and the
local income tax imposed under IC 6-3.6 deducted and withheld
from the individual's payment of unemployment compensation. If
an election is made, the department shall withhold state adjusted
gross income tax imposed under IC 6-3 and the local income tax
imposed under IC 6-3.6 at the applicable rate prescribed in
withholding instructions issued by the department of state
revenue.
(5) 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 or the state (as appropriate) for payment of
income taxes.
(c) The commissioner shall follow all procedures of the United
States Department of Labor, the Internal Revenue Service, and the
department of state revenue 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.

Legislative History

As added by P.L.166-1996, SEC.4. Amended by P.L.3-2008, SEC.159; P.L.2-2011, SEC.15; P.L.197-2016, SEC.118.