PUBLIC LAW 103-465—DEC. 8, 1994 108 STAT. 4997 by an employer to an employee. The amount to be deducted EOid withheld under this chapter from any payment to which any request under lids paragraph apphes shall be an amount equal to 15 percent of such payment "(3) AUTHORITY FOR OTHER VOLUNTARY WITHHOLDING.— The Secretary is authorized by regulations to provide for withholding— "(A) from remuneration for services performed by an employee for the employee's employer which (witiiout regard to this pjiragraph) does not constitute wages, and "(B) fix)m any other type of payment with respect to which the Secretary finds tiiat withholding would be appropriate under the provisions of this chapter, if the employer and employee, or the person making and the person receiving such other type of payment, agree to such withholding. Such agreement shall be in such form and manner as the Secretary may by regulations prescribe. For purposes of this chapter (and so much of subtitle F as relates to this chapter), remuneration or other payments with respect to which such agreement is made shall be treated as if they were wages paid by an employer to an employee to the extent that such remuneration is paid or other payments are made during the period for which the agreement is in effect." (b) STATE LAW MUST PERMIT VOLUNTARY WITHHOLDING OF FEDERAL INCOME TAX FROM UNEMPLOYMENT COMPENSATION.— Section 3304(a) is amended by striking "and" at the end of paragraph (17), by redesignating paragraph (18) as paragraph (19), and by inserting after paragraph (17) the following new paragraph: "(18) Federal individual income tax from unemployment compensation is to be deducted and withheld if an individual receiving such compensation voluntarily requests such deduction and withholding; and". (c) WITHHOLDING FROM UNEMPLOYMENT COMPENSATION OF FEDERAL, STATE, AND LOCAL INCOME TAXES PERMITTED.— (1) Subparagraph (C) of section 3304(a)(4) is amended by inserting aher "health insurance" the following: ", or the withholding of Federal, State, or local individual income tax,". (2) Subsection (iD of section 3306 is amended by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively, and by inserting sifter.paragraph (2) the following new paragraph: "(3) nothing in this subsection shall be construed to prohibit deducting any amount fix)m unemployment compensation otherwise payable to an individual and using the amount so deducted to pay for health insurance, or the withholding of Federal, State, or local indi\idual income tax, if the individual elected to have such deduction made and such deduction was made under a program approved by the Secretary of Labor;". (3) Paragraph (5) of section 303(a) of the Social Security Act is amended by inserting after "health insurance" the following: ", or the withholding of Federsil, State, or local individual income tax,". (d) EFFECTIVE DATFL—The amendments made by this section shall apply to payments made after December 31, 1996. Regulations. 26 USC 3304. 42 USC 503. 26 USC 3304 note.
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