MS HB509

Amends Mississippi Code Section 71-5-506 to allow individuals receiving unemployment compensation to elect withholding of both federal and state income taxes from their benefits.

Requires claimants filing for unemployment compensation to be notified that they may request tax withholding and that they can change their withholding election at any time.

Specifies that withheld amounts remain in the unemployment fund until transferred to the appropriate federal or state tax authority as income tax payments.

Directs the Mississippi Department of Employment Security to follow procedures established by the U.S. Department of Labor, Federal Internal Revenue Service, and Mississippi Department of Revenue for tax withholding and deduction.

Takes effect July 1, 2021.