AR HB1049

Allows individuals receiving unemployment compensation or unemployment insurance benefits to elect state income tax withholding, effective January 1, 2022.

Sets the withholding rate at 4.5% of unemployment benefit payments for those who request it.

Requires the Arkansas Department of Workforce Services to inform applicants of the taxability of benefits and the option to request withholding.

Permits recipients to change their withholding election status at any time.

Withholding cannot begin until the Division of Workforce Services certifies its computer systems are ready and the program receives approval from the United States Secretary of Labor.