Relates to the election to have federal and/or state income tax deducted and withheld from an individual's unemployment insurance benefits

This bill allows unemployed individuals to elect to have federal and/or state income tax withheld directly from their unemployment insurance payments. It amends New York's Labor Law to specify that federal tax withholding follows the federal internal revenue code (26 U.S.C.A. 3402(p)(2)), while state withholding uses a flat 4% rate. Individuals can change their withholding election, but the bill clarifies that electing withholding doesn't eliminate potential additional tax liability due under tax law. The policy directly affects people receiving unemployment benefits who wish to manage their tax payments proactively.