House Bill 509

(As Passed the House)

AN ACT TO AMEND SECTION 71-5-506, MISSISSIPPI CODE OF 1972, TO ALLOW WITHHOLDING FROM UNEMPLOYMENT COMPENSATION FOR STATE INCOME TAXES; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 71-5-506, Mississippi Code of 1972, is amended as follows:

71-5-506. (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 and local income tax;

(b) Requirements exist pertaining to estimated tax payments;

(c) The individual may elect to have federal and state income tax deducted and withheld from the individual's payment of unemployment compensation at the amount specified in the Federal Internal Revenue Code and Chapter 7, Title 27, Mississippi Code of 1972;

(d) The individual shall be permitted to change a previously elected withholding status.

(2) Amounts deducted and withheld from unemployment compensation shall remain in the unemployment fund until transferred to the federal or state taxing authority as a payment of income tax.

(3) The commission shall follow all procedures specified by the United States Department of Labor * * *~~and~~, the Federal Internal Revenue Service and the Mississippi Department of Revenue pertaining to the deducting and withholding of income tax.

(4) Amounts shall be deducted and withheld in accordance with the priorities established in regulations developed by the commission.

SECTION 2. This act shall take effect and be in force from and after July 1, 2021.