S T A T E O F N E W Y O R K
________________________________________________________________________
4721
2025-2026 Regular Sessions
I N A S S E M B L Y
February 5, 2025
___________
Introduced by M. of A. BURDICK -- read once and referred to the Commit-
tee on Labor
AN ACT to amend the labor law, in relation to the election to have
federal and/or state income tax deducted and withheld from an individ-
ual's unemployment insurance benefits
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 6 of section 596 of the labor
law, as amended by chapter 369 of the laws of 2008, is amended to read
as follows:
(a)(1) Unemployment benefits are subject to federal, state and local
income tax;
(2) Requirements exist pertaining to estimated tax payments;
(3) The individual may elect to have federal and/or state income tax
deducted and withheld from the individual's payment of unemployment
benefits at the amount specified under the federal internal revenue code
(26 U.S.C.A. 3402(p)(2)) and/or [the] AN AMOUNT EQUAL TO FOUR PERCENT OF
SUCH PAYMENT FOR THE PURPOSE OF the state income tax withholding [tax
schedules as specified under the tax law and relevant regulations];
[and]
(4) The individual shall be permitted to change a previously elected
withholding status[.]; AND
(5) EVEN IF THE INDIVIDUAL ELECTS TO HAVE FEDERAL AND/OR STATE INCOME
TAX DEDUCTED AND WITHHELD FROM THE INDIVIDUAL'S PAYMENT OF UNEMPLOYMENT
BENEFITS, ADDITIONAL TAX MAY STILL BE DUE AS PRESCRIBED FOR SUCH TAX
PAYMENT UNDER THE TAX LAW.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08480-01-5