Bill 4369

                    Current Status

Bill Number:                    4369
Ratification Number:            344
Act Number:                     306
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19960109
Primary Sponsor:                Cato 
All Sponsors:                   Cato, Kirsh, Riser, Vaughn, Meacham
Drafted Document Number:        PFM\7747HTC.96
Date Bill Passed both Bodies:   19960329
Date of Last Amendment:         19960208
Governor's Action:              S
Date of Governor's Action:      19960506
Subject:                        Unemployment compensation, income
                                tax withholding

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19960515  Act No. A306
------  19960506  Signed by Governor
------  19960430  Ratified R344
Senate  19960329  Read third time, enrolled for
                  ratification
Senate  19960328  Read second time, unanimous consent
                  for third reading on Friday,
                  19960329
Senate  19960327  Committee report: Favorable              06 SF
Senate  19960213  Introduced, read first time,             06 SF
                  referred to Committee
House   19960209  Read third time, sent to Senate
House   19960208  Amended, read second time, 
                  unanimous consent for third reading 
                  on the next Legislative day
House   19960207  Committee report: Favorable with         26 HLCI
                  amendment
House   19960109  Introduced, read first time,             26 HLCI
                  referred to Committee
House   19951220  Prefiled, referred to Committee          26 HLCI

(A306, R344, H4369)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-39-40 SO AS TO PROVIDE FOR THE VOLUNTARY WITHHOLDING OF STATE AND FEDERAL INCOME TAXES FROM UNEMPLOYMENT COMPENSATION.

Be it enacted by the General Assembly of the State of South Carolina:

Income tax withholding

SECTION 1. Chapter 39, Title 41 of the 1976 Code is amended by adding:

"Section 41-39-40. (A) As of January 1, 1997, an individual filing an initial claim for unemployment compensation must be advised at the time of the filing of the claim that:

(1) Unemployment compensation is subject to federal and state income taxation;

(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 payment of unemployment compensation at the rate specified in the Internal Revenue Code of 1986;

(4) The individual may elect to have South Carolina state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of seven percent;

(5) The individual is permitted to change a previously elected withholding of income tax at least once.

(B) Amounts deducted and withheld from unemployment compensation shall remain in the Unemployment Trust Fund until transferred to the federal or state taxing authority as a payment of income tax. The date of transfer to the South Carolina Department of Revenue and Taxation must be the same date as the transfer to the Internal Revenue Service.

(C) The commission shall follow all procedures specified by the United States Department of Labor and the Internal Revenue Service pertaining to the deducting and withholding of income tax.

(D) Amounts must 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 amount required to be deducted and withheld under this title."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

Approved the 6th day of May, 1996.