(a) When an individual files a new claim for unemployment compensation, the department shall advise the individual that (1) unemployment compensation benefits are subject to federal income tax;
(2) federal requirements exist pertaining to estimated federal tax payments;
(3) the individual may elect to have federal income tax deducted and withheld from the individual's payment of unemployment compensation benefits at the amount specified in 26 U.S.C. (Internal Revenue Code); and
(4) the individual is permitted to change a previously elected status for the withholding of federal income tax.
(b) Amounts deducted for federal income taxes and withheld from unemployment compensation benefits shall remain in the unemployment fund until transferred to the federal Internal Revenue Service as payment of federal income tax.
(c) The department shall comply with legal requirements of the federal Department of Labor and the Internal Revenue Service regarding the deduction and withholding of federal income tax.