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(h) The term "child support obligations" is defined for purposes of these

provisions as including only obligations which are being enforced pursuant

to a plan described in section 454 of the Social Security Act which has been

approved by the Secretary of Health and Human Services under Part D of

Title IV of the Social Security Act.

(i) The term "State or local child support enforcement agency" as used in

these provisions means any agency of a State or political subdivision thereof

operating pursuant to a plan described in subsection (h). (703.1 added Oct. 22, 1981, P.L.301, No.106) Section 703.2. Voluntary Federal Income Tax Withholding.--

(a) With respect to all payments of unemployment compensation made after

December 31, 1996:

(1) An individual filing a new application for unemployment compensation

shall, at the time of filing the application, be advised that:

(i) Unemployment compensation is subject to Federal income tax.

(ii) Requirements exist pertaining to estimated tax payments.

(iii) The individual may elect to have Federal income tax deducted

and withheld from the individual's payment of unemployment

compensation at the amount specified in the Internal Revenue

Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.).

(iv) The individual shall be permitted to change previously elected

withholding status.

(2) Amounts deducted and withheld from unemployment compensation shall

remain in the Unemployment Compensation Fund until transferred to the

Federal taxing authority as a payment of income tax.