                                 CODE OF VIRGINIA

DEDUCTION AND WITHHOLDING OF FEDERAL INCOME TAX (§ 60.2-608.1)

A. For all payments made after December 31, 1996, federal income tax may be
deducted and withheld from a benefit payment if the individual receiving such
benefits voluntarily requests such deduction and withholding. The deduction
shall be an amount equal to fifteen percent of such payment, or the amount
determined by the Internal Revenue Service.

B. Any amount deducted and withheld under subsection A of this section shall
remain in the Unemployment Compensation Fund until transferred to the Internal
Revenue Service as a payment of income tax.

C. Any amount deducted and withheld under subsection A of this section shall be
treated as if it were paid to the individual as unemployment benefits.

D. Amounts shall be deducted and withheld under this section only after amounts
are deducted and withheld for any unemployment benefit overpayments, child
support obligations, or any other amounts required to be deducted and withheld
under this title.

E. The Commission shall follow all procedures specified by the United States
Department of Labor and the Internal Revenue Service pertaining to the deducting
and withholding of federal income tax from unemployment benefits.

HISTORY: 1996, c. 107.