CHAPTER 574

FORMERLY

HOUSE BILL NO. 424

AN ACT TO AMEND CHAPTER 33. TITLE 19 OF THE DELAWARE CODE. RELATING TO UNEMPLOYMENT COMPENSATION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 33. Title 19. Delaware Code by adding a Section 3329 to read as follows:

"Section 3329. Voluntary withholding of federal income tax from benefits.

(1) An individual tiling a new claim for unemployment insurance benefits shall, at the time of filing such claim. be advised that:

(a) Unemployment Insurance benefits are subject to federal. state, and local income tax:

(b) Requirements exist pertaining to estimated tax payments:

(c) the individual may elect to have federal income tax deducted and withheld from the individual's payment of unemployment insurance benefits at the amount specified in the federal Internal Revenue Service Code; and.

(d) the individual shall he permitted to change a previously elected withholding status no more than once during a claim benefit year

(2) Amounts deducted and withheld from unemployment insurance benefits shall remain in the unemployment Insurance .Trust Fund until transferred to the federal taxing authority is a payment of income tax.

(3) the Director of Unemployment Insurance shall follow all procedures specified by the United States Department of Labor and the federal Internal Revenue Service pertaining to the deducting and withholding of income tax Amounts deducted and withheld from unemployment insurance benefits of federal income tax shall he deducted and withheld only after amounts are deducted and withheld. in the deduction priority established by the Director of unemployment Insurance. for any overpayments. child support obligations. food stamp over-issuances or any other amounts required to be deducted and withheld under this Title.

(5) The provisions of this Section relating to the voluntary deduction and withholding of federal income tax from unemployment insurance benefits shall apply to benefit payments made on or alter January I, 1997.-

Approved July 25, 1996