Skip to main content
Find a Lawyer

Indiana Code Title 22. Labor and Safety § 22-4-17-2.5

Current as of January 02, 2024 | Updated by Findlaw Staff

Sec. 2.5. (a) When an individual files an initial claim, the individual shall be advised of the following:

(1) Unemployment compensation is subject to federal, state, and local income taxes.

(2) Requirements exist concerning estimated tax payments.

(3) The individual may elect to have income taxes withheld from the individual's payment of unemployment compensation.  If an election is made, the department shall withhold federal income tax at the applicable rate provided in the Internal Revenue Code  1.

(4) After December 31, 2011, the individual may elect to have state adjusted gross income tax imposed under IC 6-3 and the local income tax imposed under IC 6-3.6 deducted and withheld from the individual's payment of unemployment compensation.  If an election is made, the department shall withhold state adjusted gross income tax imposed under IC 6-3 and the local income tax imposed under IC 6-3.6 at the applicable rate prescribed in withholding instructions issued by the department of state revenue.

(5) An individual is allowed to change an election made under this section.

(b) Money withheld from unemployment compensation under this section shall remain in the unemployment fund until transferred to the federal taxing authority or the state (as appropriate) for payment of income taxes.

(c) The commissioner shall follow all procedures of the United States Department of Labor, the Internal Revenue Service, and the department of state revenue concerning the withholding of income taxes.

(d) Money shall be deducted and withheld in accordance with the priorities established in regulations developed by the commissioner.

1  26 U.S.C.A. § 1 et seq.
Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Indiana Code Title 22. Labor and Safety § 22-4-17-2.5 - last updated January 02, 2024 | https://codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-4-17-2-5/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard