§ 27-3-320 — Benefit withholding for federal income taxes; department notification; procedure; withholding status election

(a) The department shall at the time of filing, advise an
individual filing an initial claim for benefits payable under
this act that:
(i) Benefits are subject to federal income tax;
(ii) Estimated federal income tax payments are
required by the federal internal revenue service;
(iii) Effective January 1, 1997 and each year
thereafter, federal income tax may be deducted and withheld from
benefits at the amount specified by federal law upon election by
the individual; and
(iv) Previously elected federal income tax
withholding status under this section may be changed once during
any one (1) benefit year.
(b) Effective January 1, 1997 and each year thereafter and
upon request by an individual filing an initial claim for
benefits payable under this act, the department shall, subject
to subsection (d) of this section, deduct and withhold federal
income tax from benefits payable to the individual in the amount
specified by federal law and in accordance with procedures
specified by the United States department of labor and the
internal revenue service. Amounts deducted and withheld
pursuant to this section shall remain in the fund until
transferred to the internal revenue service as payment of
federal income tax.
(c) The department shall by rule and regulation establish
procedures for administering this section and shall permit an
individual to change his withholding status once during each
benefit year.
(d) Amounts shall not be deducted and withheld under this
section until amounts are deducted and withheld for any
overpayment, child support obligation or any other amount
required or allowed to be deducted and withheld under this act.