STATE OF NEW YORK
________________________________________________________________________
10048
IN SENATE
April 24, 2026
___________
Introduced by Sen. JACKSON -- read twice and ordered printed, and when
printed to be committed to the Committee on Labor
AN ACT to amend the labor law, in relation to the election to have
federal and/or state income tax deducted and withheld from an individ-
ual's unemployment insurance benefits
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 6 of section 596 of the labor
2 law, as amended by chapter 369 of the laws of 2008, is amended to read
3 as follows:
4 (a)(1) Unemployment benefits are subject to federal, state and local
5 income tax;
6 (2) Requirements exist pertaining to estimated tax payments;
7 (3) The individual may elect to have federal and/or state income tax
8 deducted and withheld from the individual's payment of unemployment
9 benefits at the amount specified under the federal internal revenue code
10 (26 U.S.C.A. 3402(p)(2)) and/or [the] an amount equal to four percent of
11 such payment for the purpose of the state income tax withholding [tax
12 schedules as specified under the tax law and relevant regulations];
13 [and]
14 (4) The individual shall be permitted to change a previously elected
15 withholding status[.]; and
16 (5) Even if the individual elects to have federal and/or state income
17 tax deducted and withheld from the individual's payment of unemployment
18 benefits, additional tax may still be due as prescribed for such tax
19 payment under the tax law.
20 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08480-01-5
