SB 0855 Withholding of Income Taxes From Unempl. Comp. Benefits
LR Number:S2997.01T Fiscal Note:2997-01
Committee:Labor and Industrial Relations
Last Action:07/10/96 - Signed by Governor
Effective Date:August 28, 1996
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Current Bill Summary

SB 855 - This act is designed to meet the requirements of a federal mandate regarding the withholding of federal income taxes from unemployment benefits paid beginning January 1, 1997.

Beginning on 1/1/97, anyone who files an unemployment compensation claim shall be advised that it is subject to federal, state and local taxes. There are requirements for estimated tax payments. Federal income tax can be withheld from unemployment compensation payments and the withholding status can be changed.

Any amounts withheld stay in the unemployment compensation trust fund until transferred to the appropriate taxing authority.

The Division of Employment Security must follow all federal procedures regarding withholding, established by the US Department of Labor and the IRS.

Before any amount can be withheld for federal income taxes, all amounts for unemployment compensation overpayments, child support, food stamp overissuances and any other amounts required under Chapter 288, RSMo, must first be deducted and withheld.

This act is identical to HB 1313 (1996).