Bill Text: HI SB1290 | 2022 | Regular Session | Introduced
Bill Title: Relating To Unemployment Insurance.
Spectrum: Moderate Partisan Bill (Democrat 9-1)
Status: (Introduced - Dead) 2021-12-10 - Carried over to 2022 Regular Session. [SB1290 Detail]
Download: Hawaii-2022-SB1290-Introduced.html
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THE SENATE |
S.B. NO. |
1290 |
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THIRTY-FIRST LEGISLATURE, 2021 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to unemployment insurance.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Section 235-69, Hawaii Revised Statutes, is amended to read as follows:
"[[]§235-69[]
Voluntary] Mandatory deduction and
withholding of state income tax from unemployment compensation. An individual receiving unemployment
compensation benefits under chapter 383 [may elect to] shall have
state income tax deducted and withheld from the individual's payment of
unemployment compensation at the rate of five per cent in accordance with
section 383-163.6."
SECTION 2. Section 383-161, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) Any agreement by an individual to waive, release, or commute the individual's rights to benefits or any other rights under this chapter shall be void, except agreements to withhold and deduct benefits for the following purposes:
(1) The payment of
child support obligations as provided in section 383-163.5;
(2) The [voluntary]
deduction and withholding of federal and state income tax from unemployment
compensation as provided in section 383-163.6; and
(3) The repayment of uncollected overissuances of food stamp coupons as provided in section 383-163.7."
SECTION 3. Section 383-163, Hawaii Revised Statutes, is amended to read as follows:
"§383-163 No assignment of
benefits; waiver. No assignment,
pledge, or encumbrance of any right to benefits [which] that are
or may become due or payable under this chapter shall be valid and the right to
benefits shall not be subject to levy, execution, attachment, garnishment, or
any other remedy for the collection of debt.
No waiver of this section shall be valid, except that this section shall
not apply to:
(1) Section 383-163.5
with respect to the withholding and deduction of benefits for the payment of child
support obligations;
(2) Section 383-163.6
with respect to the [voluntary] withholding and deduction of benefits
for payment of federal and state income taxes; and
(3) Section 383-163.7 with respect to the withholding and deduction of benefits for repayment of uncollected overissuances of food stamp coupons."
SECTION 4. Section 383-163.6, Hawaii Revised Statutes, is amended to read as follows:
"[[]§383-163.6[] Voluntary] Mandatory deduction and
withholding of federal and state income taxes. (a) The
department shall deduct and withhold from all unemployment compensation:
(1) Federal income tax
at the amount specified in the federal Internal Revenue Code;
(2) State income tax
at the amount specified in section 235-69; and
(3) State and local
income taxes for other states and localities outside this State at the percentage
established by that state or locality, if the department by agreement with the
other state or locality is authorized to deduct and withhold income tax.
(b) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, be advised that:
(1) Unemployment compensation is subject to federal and state income tax;
(2) Requirements exist pertaining to estimated tax payments;
(3) The [individual
may elect to have] department is required to deduct and withhold
federal income tax [deducted and withheld] from the individual's payment
of unemployment compensation at the amount specified in the federal Internal
Revenue Code;
(4) The [individual
may elect to have] department is required to deduct and withhold state
income tax [deducted and withheld] from the individual's payment of
unemployment compensation at the amount specified in section 235-69;
(5) The [individual
may elect to have] department is required to deduct and withhold state
and local income taxes [deducted and withheld] from the individual's
payment of unemployment compensation for other states and localities outside
this State at the percentage established by the state or locality, if the
department by agreement with the other state or locality is authorized to deduct
and withhold income tax; and
(6) The individual shall be permitted to change a previously elected withholding status no more than once during a benefit year.
(b) Amounts deducted and withheld from unemployment compensation shall remain in the unemployment compensation fund until transferred to the federal, state, or local taxing authority as a payment of income tax.
(c) The director shall follow all procedures specified by the United States Department of Labor, the federal Internal Revenue Service, and the state department of taxation, pertaining to the deducting and withholding of income tax.
(d) Amounts shall be deducted and withheld under this section only after any other amounts allowed under chapter 383 are deducted and withheld."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2021.
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INTRODUCED BY: |
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Report Title:
Unemployment Insurance Benefits; Income Tax Withholding; Department of Labor and Industrial Relations
Description:
Requires DLIR to withhold and deduct income taxes from unemployment insurance benefits.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
