Friday, May 09, 2008
| About Unemployment Insurance |
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UI MN Home Page | Site Map Friday, May 09, 2008 |
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Frequently Asked Questions About Unemployment Benefits Overpayments
Answers to Frequently Asked Questions What is an overpayment on my unemployment insurance account? Overpayments are benefits paid that you were not entitled to receive. If benefits are paid in error, whether it is your fault or ours, you are required to repay them. If you are overpaid benefits, you are sent a notice. You are responsible for repaying the overpaid amount. If you are not requesting benefits at the time you receive a notice of overpayment, we are willing to set up a payment plan with you to repay the debt in a reasonable period of time. If you do not make efforts to repay your overpayment it will be recovered by deductions from future benefits, seizing your state tax refund, garnishing your wages, a levy on your bank account, or referral to a collection agency.
What can cause an overpayment on my unemployment insurance account? An appeal decision which finds that you are disqualified or not eligible for benefits you have already been paid; Unreported or misreported earnings; Misinformation provided by the employer; Misinformation provided by the applicant.
When can my account be audited? Audits are done on a regular basis. Any payment for any week can be audited and each week a random sample of payments are selected for thorough audits. Technology is in place to compare your wages/earnings with weeks that you received unemployment insurance payments.
A penalty is assessed on all overpayments established as a result of a fraudulent act. A penalty of 25% of the total overpaid amount is assessed for the first occurrence and 50% for each additional occurrence. Minnesota Statutes provide for prosecution of felony theft which may include penalties of up to a $10,000 fine and/or 10 (ten) years in jail.
Can these penalties be deducted from future entitlement to unemployment benefits? No, under Federal Unemployment Statute, benefit penalty cannot be offset through your unemployment benefits.
You can help prevent fraud by reporting potential violations to the Unemployment Insurance (UI) Program via an on line Fraud Report.
You are responsible for all unemployment benefits paid on your account using your PIN. You should never share your PIN with anyone-even a department representative. Should someone else use your PIN to collect your unemployment benefits, you are responsible for repaying the benefits as well as being the subject of any penalties.
Even though you did not receive the money withheld, you are considered to be overpaid the entire amount because payments withheld are paid on your behalf to fulfill your present (child support) or future (tax withholding) obligations.
What collection efforts will be used to recover a non-fraud overpayment? *Deductions from future benefits payable (100% of weekly benefit entitlement until overpayment is totally recovered) if the overpayment is caused by failure to report deductible earnings or deductible payments. *Establishing a department approved payment plan for full repayment. *Intercepting any Minnesota State Tax refund, property tax credit, or rent credit by filing claims with the Minnesota Department of Revenue under the Revenue Recapture Act. *Garnishment of earnings from an individual's employer.
What collection efforts will be used to recover a fraudulent overpayment? *All of the above and; *Court ordered restitution after felony prosecution by the County Attorney. *Referral to an outside collection agency adding between 15% and 25% interest to the total overpayment. *Filing a lien against the overpaid individuals non exempt assets which could also adversely affect the individual's credit rating. *Seize the money from the overpaid individual's bank account.
All overpayments due to unreported earnings or intentionally submitting erroneous information while claiming benefits are offset at 100% against your unemployment insurance weeks claimed. All other overpayments are offset at 50% against your unemployment weeks claimed.
Under Minnesota law, there is no waiver of overpayments on unemployment insurance. We will continue to send monthly billing statements pending the outcome of your appeal. However, certain actions such as garnishment of your payroll earnings at your place of employment or referral to a collection agency should not occur if you have filed a timely appeal.
Can my overpayment be waived if I am having financial difficulties? Under Minnesota Law, there is no waiver of overpayments on unemployment insurance, but we are responsive to the needs of our customers and are willing to make payment agreements based on individual circumstances. It is to your benefit to contact us to discuss your situation. You may incur additional costs, should you choose not to contact us to report financial hardship which creates an inability to repay the debt.
If I have a problem with direct deposit of my unemployment payment into my bank, who should I call? Call Central Benefits at 651-297-2182.
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