How to Handle Unemployment Benefit Overpayments in Pennsylvania
Learning how to pay back overpaid unemployment benefits in Pennsylvania is important for any beneficiaries to know. Understanding how to pay unemployment overpayments in PA starts with learning what is considered an overpayment. Beneficiaries who receive a payment that is higher than the eligible dollar amount already established will be responsible for repayment. To repay overissued unemployment insurance benefits, the overpayment must first be reported to the proper authorities within the PA Office of Unemployment Compensation. Once a beneficiary finds that he or she has been issued an incorrect amount of unemployment benefits, it should be reported immediately. Failure to pay overpaid unemployment insurance benefits or failure to report the overpayment can result in serious consequences for the violator. To learn more about overpayment of unemployment insurance and how to repay, continue reviewing the outlined sections below.
What is UI overpayment in Pennsylvania?
Pennsylvania UI overpayments can occur for a variety of reasons, many of which are at no fault of the beneficiary. An unemployment insurance benefit overpayment is considered any benefit received in which a beneficiary was not entitled. UI compensation overpayments are defaulted into two groups: overpayments that are the fault of the beneficiary and those that are not. The beneficiary will be required to pay back overpaid unemployment benefits no matter which party is responsible for the overpayment.
A fault overpayment for unemployment benefits in PA results from an applicant receiving benefits not entitled to them as a result of unemployment fraud. If a beneficiary receives additional unemployment benefits by either providing false information or misrepresenting specific facts during weekly claims, this is considered fault overpayment. Not only will the beneficiary need to pay back overpaid unemployment benefits in these cases, but also pay any overpayment interest as well. Interest for UI overpayment will accrue for any principal not paid within 15 days of the Notice of Overpayment determination issued to a beneficiary.
A non-fault unemployment insurance overpayment results when the overpayment issued is through no fault of the beneficiary. Mistakes can be made within the unemployment office which can result in an overpayment of unemployment benefits. Despite being non-fault, repayment of overissued unemployment insurance in these cases is still required. The non-fault UI overpayment will be deducted from any future benefit payments throughout the benefit year. To find out more information about paying back overpaid unemployment benefits in Pennsylvania, download our helpful guide today.
How to Pay Unemployment Overpayments in Pennsylvania
The Department of Labor & Industry allows beneficiaries to pay back overpaid unemployment benefits using one of two options: online or by mail. The online option to repay overissued unemployment insurance in PA is generally the simplest way to do so. Beneficiaries paying back an unemployment overpayment online will need to pay an additional fee in order to cover the administrative costs of the department. An online payment can be made in full, or applicants may have the ability to make partial payments against the balance. To pay overpaid unemployment insurance benefits online, beneficiaries will need to provide some personal information.
The second way to repay overissued unemployment compensation is by mail. Applicants will need to send a cashier's check, certified check or money order that covers the full or partial balance as well as an administrative fee. Once the PA repayment for overissued unemployment insurance is completed, a billing statement showing the zero balance will be issued. Any check that is not honored by the bank will be assessed a penalty that will be added to the UI overpayment amount.
To find out how to pay unemployment overpayments online or by phone with step-by-step instructions and specific fees, download our complimentary guide today.
What are the consequences of failure to repay overissued unemployment insurance in PA?
Failure to pay back overpaid unemployment benefits in Pennsylvania can result in a variety of consequences. For beneficiaries who do not repay overpaid unemployment benefits or report when an overpayment occurred, losing unemployment benefits entirely is possible. Also, failure to report or repay UI overpayment can result in losing the ability to apply for unemployment benefits again in the future. Failure to repay overpaid unemployment insurance benefits often results in a lien against the beneficiary. The lien can be attached to a beneficiary's real estate or personal property owned. The lien will not be removed until the UI overpayment balance is at zero. Liens can also have lien fees included, which will need to be paid by the beneficiary as well. Failing to repay unemployment insurance benefits in PA can also have any or all of a tax return withheld. A federal income tax refund can be intercepted by the United States Department of Treasury and sent to the Pennsylvania Department of Labor & Industry in order to repay overissued unemployment insurance.