UIPL 17-95 Attachment II

DRAFT LANGUAGE TO IMPLEMENTA VOLUNTARY WITHHOLDING PROGRAM

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

(A)  Unemployment compensation is subject to Federal, State andlocal 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 compensation at the amount specified in the Federal Internal Revenue Code;

(D)  The individual may elect to have State income tax deductedand withheld from the individual's payment of unemployment compensation at the rate of __ percent;

(E)  The individual may elect to have local income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of __ percent; and

(F)  The individual may elect to have State and local incometaxes deducted and withheld from the individual's payment ofunemployment compensation for other States and localitiesoutside this State at the percentage established by such Stateor locality.

(G)  The individual shall be permitted to change a previouslyelected withholding status.

(2)  Amounts deducted and withheld from unemployment compensationshall remain in the unemployment fund until transferred to theFederal, State or local taxing authority as a payment of incometax.

(3)  The commissioner shall follow all procedures specified bythe United States Department of Labor and the Federal InternalRevenue Service pertaining to the deducting and withholding ofincome tax.

(4)  Amounts shall be deducted and withheld in accordance withthe priorities established in regulations developed by thecommissioner.