KRS 341.395: Information to be given to individual filing new claim -- Deduction and

withholding of income tax.

(1) An individual filing a new claim for unemployment compensation shall, at the time

of filing the claim, be advised that:

(a) Unemployment compensation is subject to federal and state income tax;

(b) Requirements exist pertaining to estimated tax payments;

(c) The individual may elect to have federal income tax deducted and withheld

from the individual's payment of unemployment compensation at the amoun t

specified in the Federal Internal Revenue Code; and

(d) The individual shall be permitted to change a previously elected withholding

status one (1) time during the individual's benefit year.

(2) Amounts deducted and withheld from unemployment compensatio n shall remain in

the unemployment fund until transferred to the federal taxing authority as a payment

of income tax.

(3) The secretary shall follow all procedures specified by the United States Department

of Labor and the Federal Internal Revenue Service pertaining to the deducting and

withholding of income tax.

(4) Amounts shall be deducted and withheld in accordance with the priorities

established in administrative regulations promulgated by the secretary.