This bill proposes to amend section 43-407 of the Arizona Revised Statutes, specifically regarding the treatment of unemployment compensation for tax withholding purposes. Under current law, any unemployment compensation payment to an individual who has elected to have state income tax withheld is treated as a payment of wages by an employer to an employee for a payroll period. The law specifies that the amount withheld at the time of payment is ten percent of federal income tax deducted and withheld.

The proposed changes would insert new language clarifying the treatment of unemployment compensation and remove the specific reference to the withholding amount being ten percent of federal income tax. This update aims to streamline the language and potentially allow for adjustments to the withholding rate in the future without requiring further legislative action.

Statutes affected:
Introduced Version: 43-407