Montana Code 39-51-2207. Voluntary withholding of taxes from benefits — procedures
39-51-2207. Voluntary withholding of taxes from benefits — procedures. (1) The department shall advise an individual at the time the individual files a new claim for unemployment compensation that:
Terms Used In Montana Code 39-51-2207
- Benefits: means the money payments payable to an individual, as provided in this chapter, with respect to the individual's unemployment. See Montana Code 39-51-201
- Department: means the department of labor and industry provided for in Title 2, chapter 15, part 17. See Montana Code 39-51-201
- Fund: means the unemployment insurance fund established by this chapter to which all contributions and payments in lieu of contributions must be paid and from which all benefits provided under this chapter must be paid. See Montana Code 39-51-201
- Taxes: means contributions and assessments required under this chapter but does not include penalties or interest for past-due or unpaid contributions or assessments. See Montana Code 39-51-201
- United States: includes the District of Columbia and the territories. See Montana Code 1-1-201
(a)unemployment compensation is subject to federal 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 unemployment compensation at the rate or amount specified in the Internal Revenue Code; and
(d)the individual may change a previously elected withholding status in a manner and at a frequency prescribed by the department, subject to the provisions in subsection (3).
(2)Funds deducted and withheld from unemployment compensation must remain in the unemployment insurance fund provided for in 39-51-401 until the funds are transferred as income tax payments to the internal revenue service.
(3)The department shall follow all procedures specified by the United States department of labor and the internal revenue service pertaining to the voluntary deduction and withholding of income tax from unemployment compensation.