AZ SB1437

Amends Arizona Revised Statutes section 43-407 to clarify the treatment of unemployment compensation payments for income tax withholding purposes.

Specifies that unemployment compensation payments subject to withholding elections are treated as wage payments by employers to employees for payroll period purposes.

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

Requires withholding elections to be made in writing by the payee 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.