(a) An individual filing a new claim for unemployment insurance benefits establishing a new benefit year shall be advised of the following, at the time of filing such claim:

(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 the Secretary deduct federal income tax from the individual’s payment of unemployment insurance benefits at the amount specified in the federal Internal Revenue Code;

(4) the individual may elect to have the Secretary deduct State income tax from the individual’s payment of unemployment insurance benefits at the rate of seven percent; and

(5) the individual may change a previously elected withholding status.

(b) Amounts deducted from unemployment insurance benefits pursuant to this section shall remain in the Unemployment Insurance Fund until transferred to the appropriate taxing authority as a payment of income tax.

(c) The Secretary shall follow the procedures specified by the United States Department of Labor, the federal Internal Revenue Service, and the Maryland State Comptroller pertaining to the deducting and withholding of income tax.

(d) Amounts deducted from unemployment insurance benefits under this section shall be deducted and withheld only after amounts are deducted and withheld for any overpayments of any unemployment insurance benefits, child support obligations, and to satisfy any other requirements of federal law.