A. Every individual filing a new claim for unemployment compensation shall, at the time of filing such claim, be advised in writing that:
(1) unemployment compensation is subject to federal, state and local income tax;
(2) requirements exist pertaining to estimated tax payments;
(3) the individual may elect to have federal income tax deducted and withheld from the individual's unemployment compensation payments at the amount specified in the Internal Revenue Code of 1986; and
(4) the individual is permitted to change a previously elected withholding status one time during each benefit year.
B. Amounts deducted and withheld from unemployment compensation shall remain in the fund until transferred to the federal internal revenue service.
C. The division 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.
D. Amounts shall be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations or any other amounts required to be deducted and withheld under the Unemployment Compensation Law.
E. The provisions of this section apply to unemployment compensation payments made after December 31, 1996.