Overpayments occur when you receive benefit payments you were not eligible to receive.
This may be due to:
Regardless of the cause, you are responsible for repaying the overpaid amount of benefits to the Minnesota Unemployment Insurance (UI) Program. A notice of overpayment will be mailed to you when an overpayment is determined. If you are not requesting benefits at the time the overpayment notice is sent, contact customer service to set up a payment plan to repay the debt in a reasonable period of time. A billing statement will be sent to you each month until the overpayment is resolved.
Keep the address on your account up-to-date for at least four years after your last request for a benefit payment. Even after you stop requesting benefits, your account may be audited or we may need to contact you for other reasons. If we can’t reach you, audit findings will be made without your input, and you will be responsible for any overpayments that might result.
What collection efforts will be used to recover a non-fraud overpayment?
See fraud overpayments below for a list of collection efforts used to recover a fraudulent overpayment.
I’m appealing my overpayment, why do you keep sending me monthly billing statements?
Regardless if your overpayment is being appealed, we will continue to send monthly billing statements until the overpayment is resolved.
Can an overpayment be waived if I’m having financial difficulties?
Under Minnesota law, there is no waiver of overpayments on unemployment insurance.
Why does the total overpayment amount include the money that was withheld for child support, state tax withholding and federal tax withholding?
Even though you did not receive the money withheld for child support, state tax withholding and federal tax withholding, you are still overpaid the entire amount because payments withheld are paid on your behalf to fulfill your other obligations (child support and/or tax withholding).
If you have a fraud overpayment, you are ineligible for unemployment benefits until the fraud overpayment, penalties and interest are paid in full. For an explanation of what applicant fraud is, see Applicant Fraud.
A monetary penalty of 40% of the total amount overpaid is assessed on all overpayments established as a result of a fraudulent act. In addition:
Collection efforts used to recover fraudulent overpayments include all of the above non-fraud overpayment collection efforts and:
Can the 40% monetary penalty and interest be deducted from future unemployment benefits?
No, under Federal Unemployment Statute, the 40% penalty and interest cannot be offset through your unemployment benefits. In addition, under Minnesota Law, if you have a penalty or interest balance at the beginning of a week, you are ineligible to receive benefits. No payment will be authorized from which to offset your overpayment balance.