Repaying an Overpayment of Unemployment Benefits

Repaying an Overpayment of Unemployment BenefitsRepaying an Overpayment of Unemployment BenefitsAn overpayment of unemployment benefits occurs when you receiveunemployment compensationyou were not eligible for. There are many reasons why a claim for unemploymentbenefit can be disqualified. Overpayment of Unemployment Benefits You could have been overpaid because of an error or because you claimed benefits you were not entitled to receive. Another reason could be that your former employer successfully contested your unemploymentclaim. If this was the case, the state could have determined that you were thereforenot eligible for benefits. In most cases, you will be required to repay the unemployment compensation that was overpaid. How You Are Notified Your state unemployment office will notify you (typically by mail) if you have been overpaid. The notice will explain the reason you are getting the overpayment notice, how much you owe, penalties (if applicable), information on ho w to appeal, and instructions on repaying the amount you have been overpaid. How Is the Overpayment Repaid? In most cases, you will be asked to repay the overpayment. You may be asked to send a check for the balance of the overpayment. If you cant repay it all once, you may be able to negotiate a payment plan. Otherwise, if you are entitled to further benefits, you may be able to use those benefits to repay the overpayment. If you have not made an adequate arrangement for repayment, then the money that you owe may be seized fromyour paycheck if you are working, lottery winnings or tax refunds. If the overpayment was because of fraud, you might be charged a penalty and possibly charged with criminal fraud. Also, you may be banned from collecting futureunemployment benefits. Appeals and Waivers If you believe the notice is not accurate, you can appeal the decision. If you were overpaid because of an error, you might be able to ask for a waiver to avoid repaying all or some of the benefits you received by mistake. In most cases, you will have to prove financial hardship to receive a waiver or tonegotiate a payment plan. In most states, you will be entitled to a hearing to consider your appeal. A hearing is an informal proceeding held before an administrative law judge. Based on the evidence presented at the hearing, the judge will decide whether you are entitled to- or eligible for- unemployment insurance benefits. At the hearing, you, your employer and any witnesses for either side, may testify. The testimony will be recorded. Either side can also present papers or other physical evidence. Review the Process Instructions on file an unemploymentbenefits appeal will be listed on yourstateunemploymentwebsite. You may be able to file an appeal online, by fax, bymail, in-person or by phone. State Laws State unemployment laws contain generalandstate-specific information on unemployment overpayment, unemployment compensation, and benefits. Contact your stateunemployment office for a determination of your specific circumstances andclarificationabout how overpayment is handled your state. Rememberthatstate laws vary.