Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 HOUSE BILL 1049
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5 By: Representative Jett
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7 For An Act To Be Entitled
8 AN ACT TO ALLOW THE WITHHOLDING OF STATE INCOME TAX
9 FROM UNEMPLOYMENT COMPENSATION BENEFITS AND
10 UNEMPLOYMENT INSURANCE BENEFITS; AND FOR OTHER
11 PURPOSES.
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14 Subtitle
15 TO ALLOW THE WITHHOLDING OF STATE INCOME
16 TAX FROM UNEMPLOYMENT COMPENSATION
17 BENEFITS AND UNEMPLOYMENT INSURANCE
18 BENEFITS.
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21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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23 SECTION 1. Arkansas Code 26-51-904 is amended to read as follows:
24 26-51-904. Rules Forms.
25 (a) The Secretary of the Department of Finance and Administration
26 shall make and prescribe such rules and forms as he or she shall deem deems
27 necessary to carry out the purposes of this subchapter.
28 (b) The Secretary of the Department of Commerce, in consultation with
29 the Secretary of the Department of Finance and Administration, shall
30 promulgate forms for requests to withhold income tax from unemployment
31 compensation benefits or unemployment insurance benefits under 26-51-
32 905(c).
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34 SECTION 2. Arkansas Code 26-51-905, concerning the withholding of
35 tax under the Arkansas Income Tax Withholding Act of 1965, is amended to add
36 an additional subsection to read as follows:
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HB1049
1 (c)(1)(A) For purposes of this subchapter, the payment of unemployment
2 compensation benefits or unemployment insurance benefits shall be treated as
3 the payment of wages by an employer to an employee if:
4 (i) The payment is of the type included in gross
5 income under 26-51-404(a)(1)(G) or (a)(1)(H); and
6 (ii) The recipient of the payment has requested that
7 the payment be subject to withholding under this subchapter on the forms
8 promulgated under 26-51-904.
9 (B) The amount to be deducted and withheld from a payment
10 under subdivision (c)(1)(A) of this section is four and five-tenths percent
11 (4.5%) of the payment of unemployment compensation benefits or unemployment
12 insurance benefits.
13 (2) The agency receiving an application for unemployment
14 compensation benefits or unemployment insurance benefits shall inform the
15 applicant of the option to request withholding under this subchapter.
16 (3) An agency required to deduct and withhold income tax under
17 this subsection is not liable under 26-51-916 for the amounts required to
18 be deducted and withheld.
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20 SECTION 3. EFFECTIVE DATE. Sections 1 and 2 of this act are effective
21 for tax years beginning on or after January 1, 2022.
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