N.M. Admin. Code § 11.3.300.323

Current through Register Vol. 35, No. 17, September 10, 2024

Section 11.3.300.323 - VOLUNTARY WITHHOLDING OF FEDERAL INCOME TAX

A. The department shall provide each claimant filing a new claim for benefits with the following information in documented form:

(1) benefits are subject to federal, state and local income tax;

(2) requirements exist under federal law pertaining to estimated tax payments;

(3) a claimant may elect to have federal income tax deducted and withheld from the claimant's benefit payments at the amount specified in the federal Internal Revenue Code, 26 U.S.C. Section 3402(p)(2); and

(4) a claimant is permitted to change a previously elected withholding status one time during each benefit year.

B. Amounts deducted and withheld from benefits shall remain in the unemployment compensation fund until transferred to the internal revenue service as a payment of income tax.

C. The department shall follow all procedures specified by the United States department of labor and the internal revenue service pertaining to the deducting and withholding of federal income tax.

D. Amounts shall be deducted and withheld for the purpose of federal income tax payments only after amounts are deducted and withheld for any overpayments of benefits, child support obligations and food stamp over-issuances required to be deducted and withheld under the Unemployment Compensation Law.

N.M. Admin. Code § 11.3.300.323

5-15-97; 7-15-98; 11.3.300.323 NMAC - Rn & A, 11 NMAC 3.300.323, 01-01-2003; A, 11-15-2012, Adopted by New Mexico Register, Volume XXIX, Issue 20, October 30, 2018, eff. 11/1/2018