Was paid too much by unemployment, how would they collect it ?

Q) I was told over 20 years ago that I was paid to much by unemployment and If I ever got unemployment again I would have to pay it back. So would that be in on lump sum or a little taken from each check?

A) If you were overpaid unemployment benefits, you will be required to repay the overpayment. The amount of the overpayment will be determined by the state unemployment agency.

The state unemployment agency may require you to repay the overpayment in one of two ways:

• In a lump sum. If the overpayment is relatively small, the state unemployment agency may require you to repay it in a lump sum.
• In installments. If the overpayment is more than a few hundred dollars, the state unemployment agency may require you to repay it in installments. The amount of each installment will be determined by the state unemployment agency.

If you do not repay the overpayment, the state unemployment agency may take legal action against you. This could result in garnishment of your wages or even a lien on your property.

If you are unsure of how to repay an unemployment overpayment, you should contact the state unemployment agency. They will be able to answer your specific questions and help you develop a repayment plan.

Here are some additional tips for repaying an unemployment overpayment:

• Be prepared to pay back the full amount of the overpayment. The state unemployment agency may not be willing to negotiate the amount of the overpayment.
• Make sure you understand the repayment terms. Make sure you know how much you owe, how much each installment will be, and when each installment is due.
• Make your payments on time. If you miss a payment, the state unemployment agency may take legal action against you.
• Be patient. It may take several years to repay an unemployment overpayment.

Each state governs their unemployment benefit program differently. Please call or visit your local unemployment office and ask how they would withhold funds to pay back your over payment.

Example For California: “If you do not repay your overpayment promptly, EDD can deduct the money owed from your future weekly unemployment or state insurance benefits. This process is referred to as an offset.”http://www.edd.ca.gov/unemployment/Overpayments.htm