Hawaii 2022 Regular Session

Hawaii Senate Bill SB1290 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.B. NO. 1290 THIRTY-FIRST LEGISLATURE, 2021 STATE OF HAWAII A BILL FOR AN ACT relating to unemployment insurance. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	THE SENATE S.B. NO. 1290
4	4	THIRTY-FIRST LEGISLATURE, 2021
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.B. NO.
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11	11	1290
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13	13	THIRTY-FIRST LEGISLATURE, 2021
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	relating to unemployment insurance.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. Section 235-69, Hawaii Revised Statutes, is amended to read as follows: "[[]§235-69[] Voluntary] Mandatory deduction and withholding of state income tax from unemployment compensation. An individual receiving unemployment compensation benefits under chapter 383 [may elect to] shall have state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of five per cent in accordance with section 383-163.6." SECTION 2. Section 383-161, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Any agreement by an individual to waive, release, or commute the individual's rights to benefits or any other rights under this chapter shall be void, except agreements to withhold and deduct benefits for the following purposes: (1) The payment of child support obligations as provided in section 383-163.5; (2) The [voluntary] deduction and withholding of federal and state income tax from unemployment compensation as provided in section 383-163.6; and (3) The repayment of uncollected overissuances of food stamp coupons as provided in section 383-163.7." SECTION 3. Section 383-163, Hawaii Revised Statutes, is amended to read as follows: "§383-163 No assignment of benefits; waiver. No assignment, pledge, or encumbrance of any right to benefits [which] that are or may become due or payable under this chapter shall be valid and the right to benefits shall not be subject to levy, execution, attachment, garnishment, or any other remedy for the collection of debt. No waiver of this section shall be valid, except that this section shall not apply to: (1) Section 383-163.5 with respect to the withholding and deduction of benefits for the payment of child support obligations; (2) Section 383-163.6 with respect to the [voluntary] withholding and deduction of benefits for payment of federal and state income taxes; and (3) Section 383-163.7 with respect to the withholding and deduction of benefits for repayment of uncollected overissuances of food stamp coupons." SECTION 4. Section 383-163.6, Hawaii Revised Statutes, is amended to read as follows: "[[]§383-163.6[] Voluntary] Mandatory deduction and withholding of federal and state income taxes. (a) The department shall deduct and withhold from all unemployment compensation: (1) Federal income tax at the amount specified in the federal Internal Revenue Code; (2) State income tax at the amount specified in section 235-69; and (3) State and local income taxes for other states and localities outside this State at the percentage established by that state or locality, if the department by agreement with the other state or locality is authorized to deduct and withhold income tax. (b) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, be advised that: (1) Unemployment compensation is subject to federal and state income tax; (2) Requirements exist pertaining to estimated tax payments; (3) The [individual may elect to have] department is required to deduct and withhold federal income tax [deducted and withheld] from the individual's payment of unemployment compensation at the amount specified in the federal Internal Revenue Code; (4) The [individual may elect to have] department is required to deduct and withhold state income tax [deducted and withheld] from the individual's payment of unemployment compensation at the amount specified in section 235-69; (5) The [individual may elect to have] department is required to deduct and withhold state and local income taxes [deducted and withheld] from the individual's payment of unemployment compensation for other states and localities outside this State at the percentage established by the state or locality, if the department by agreement with the other state or locality is authorized to deduct and withhold income tax; and (6) The individual shall be permitted to change a previously elected withholding status no more than once during a benefit year. (b) Amounts deducted and withheld from unemployment compensation shall remain in the unemployment compensation fund until transferred to the federal, state, or local taxing authority as a payment of income tax. (c) The director shall follow all procedures specified by the United States Department of Labor, the federal Internal Revenue Service, and the state department of taxation, pertaining to the deducting and withholding of income tax. (d) Amounts shall be deducted and withheld under this section only after any other amounts allowed under chapter 383 are deducted and withheld." SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 6. This Act shall take effect on July 1, 2021. INTRODUCED BY: _____________________________
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49	49	SECTION 1. Section 235-69, Hawaii Revised Statutes, is amended to read as follows:
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51	51	"[[]§235-69[] Voluntary] Mandatory deduction and withholding of state income tax from unemployment compensation. An individual receiving unemployment compensation benefits under chapter 383 [may elect to] shall have state income tax deducted and withheld from the individual's payment of unemployment compensation at the rate of five per cent in accordance with section 383-163.6."
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53	53	SECTION 2. Section 383-161, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
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55	55	"(a) Any agreement by an individual to waive, release, or commute the individual's rights to benefits or any other rights under this chapter shall be void, except agreements to withhold and deduct benefits for the following purposes:
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57	57	(1) The payment of child support obligations as provided in section 383-163.5;
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59	59	(2) The [voluntary] deduction and withholding of federal and state income tax from unemployment compensation as provided in section 383-163.6; and
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61	61	(3) The repayment of uncollected overissuances of food stamp coupons as provided in section 383-163.7."
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63	63	SECTION 3. Section 383-163, Hawaii Revised Statutes, is amended to read as follows:
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65	65	"§383-163 No assignment of benefits; waiver. No assignment, pledge, or encumbrance of any right to benefits [which] that are or may become due or payable under this chapter shall be valid and the right to benefits shall not be subject to levy, execution, attachment, garnishment, or any other remedy for the collection of debt. No waiver of this section shall be valid, except that this section shall not apply to:
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67	67	(1) Section 383-163.5 with respect to the withholding and deduction of benefits for the payment of child support obligations;
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69	69	(2) Section 383-163.6 with respect to the [voluntary] withholding and deduction of benefits for payment of federal and state income taxes; and
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71	71	(3) Section 383-163.7 with respect to the withholding and deduction of benefits for repayment of uncollected overissuances of food stamp coupons."
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73	73	SECTION 4. Section 383-163.6, Hawaii Revised Statutes, is amended to read as follows:
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75	75	"[[]§383-163.6[] Voluntary] Mandatory deduction and withholding of federal and state income taxes. (a) The department shall deduct and withhold from all unemployment compensation:
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77	77	(1) Federal income tax at the amount specified in the federal Internal Revenue Code;
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79	79	(2) State income tax at the amount specified in section 235-69; and
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81	81	(3) State and local income taxes for other states and localities outside this State at the percentage established by that state or locality, if the department by agreement with the other state or locality is authorized to deduct and withhold income tax.
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83	83	(b) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, be advised that:
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85	85	(1) Unemployment compensation is subject to federal and state income tax;
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87	87	(2) Requirements exist pertaining to estimated tax payments;
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89	89	(3) The [individual may elect to have] department is required to deduct and withhold federal income tax [deducted and withheld] from the individual's payment of unemployment compensation at the amount specified in the federal Internal Revenue Code;
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91	91	(4) The [individual may elect to have] department is required to deduct and withhold state income tax [deducted and withheld] from the individual's payment of unemployment compensation at the amount specified in section 235-69;
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93	93	(5) The [individual may elect to have] department is required to deduct and withhold state and local income taxes [deducted and withheld] from the individual's payment of unemployment compensation for other states and localities outside this State at the percentage established by the state or locality, if the department by agreement with the other state or locality is authorized to deduct and withhold income tax; and
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95	95	(6) The individual shall be permitted to change a previously elected withholding status no more than once during a benefit year.
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97	97	(b) Amounts deducted and withheld from unemployment compensation shall remain in the unemployment compensation fund until transferred to the federal, state, or local taxing authority as a payment of income tax.
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99	99	(c) The director shall follow all procedures specified by the United States Department of Labor, the federal Internal Revenue Service, and the state department of taxation, pertaining to the deducting and withholding of income tax.
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101	101	(d) Amounts shall be deducted and withheld under this section only after any other amounts allowed under chapter 383 are deducted and withheld."
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103	103	SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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105	105	SECTION 6. This Act shall take effect on July 1, 2021.
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109	109	INTRODUCED BY: _____________________________
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111	111	INTRODUCED BY:
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119	119	Report Title: Unemployment Insurance Benefits; Income Tax Withholding; Department of Labor and Industrial Relations Description: Requires DLIR to withhold and deduct income taxes from unemployment insurance benefits. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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125	125	Report Title:
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127	127	Unemployment Insurance Benefits; Income Tax Withholding; Department of Labor and Industrial Relations
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131	131	Description:
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133	133	Requires DLIR to withhold and deduct income taxes from unemployment insurance benefits.
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141	141	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.