AZ HB2036

Amends section 43-407 of Arizona Revised Statutes regarding withholding from unemployment compensation payments.

Treats unemployment compensation payments subject to state income tax withholding elections as wage payments by an employer to an employee for payroll purposes.

Sets the withholding amount at 10 percent of federal income tax deducted and withheld from unemployment compensation.

Requires withholding elections to be made in writing to the unemployment compensation payor using a department-prescribed form.

Allows payees to terminate withholding at any time by submitting a written request to the payor.