(a) An individual filing a new claim for unemployment insurance benefits shall, at the time of filing such claim, be advised that:
(1) Unemployment insurance benefits are subject to federal, state and local 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 insurance benefits at the amount specified in the federal Internal Revenue Service Code; and
(4) The individual shall be permitted to change a previously elected withholding status no more than once during a claim benefit year.
Terms Used In Delaware Code Title 19 Sec. 3329
- Benefits: means the money payments payable to an individual, as provided in this chapter, with respect to the individual's unemployment. See Delaware Code Title 19 Sec. 3302
- Child: means a person who has not reached the age of 18 years. See Delaware Code Title 1 Sec. 302
- Department: means the Department of Labor. See Delaware Code Title 19 Sec. 3302
- Fund: means the Unemployment Compensation Fund established by this title to which all assessments required and from which all benefits provided under this chapter shall be paid. See Delaware Code Title 19 Sec. 3302
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
- United States: includes the states, the District of Columbia and the Commonwealth of Puerto Rico. See Delaware Code Title 19 Sec. 3302
- Year: means a calendar year, and is equivalent to the words "year of our Lord. See Delaware Code Title 1 Sec. 302
(b) Amounts deducted and withheld from unemployment insurance benefits shall remain in the Unemployment Insurance Trust Fund until transferred to the federal taxing authority as a payment of income tax.
(c) 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.
(d) Amounts deducted and withheld from unemployment insurance benefits for federal income tax shall be 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.
(e) 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 after January 1, 1997.