An overpayment occurs when unemployment insurance (UI) benefits are paid to a claimant who is later determined not to have been eligible or entitled to those benefits. Claimants are responsible for repaying any benefits they were not eligible to receive back to Iowa Workforce Development (IWD), regardless of fault. All UI overpayments are assessed interest at 1/30th of 1% per day.
Some of the common causes of overpayments include:
- an IWD decision reverses a previous allowance of UI benefits to a claimant
- claimant and/or employer fail to disclose that the claimant received wages, holiday, vacation pay, severance pay or other deductible pay after a job separation
- claimant fails to accurately report earnings and hours worked while filing for UI benefits
- claimant’s weekly and/or maximum UI benefit amount changes (a monetary redetermination is made) because the wage information was incorrect when the claim was initially filed
- claimant is disqualified from receiving UI benefits due to being responsible for their job separation
- claimant fails to notify IWD that he or she does not meet the eligibility requirements
Deliberate misrepresentation in order to receive a benefit that a claimant knew they were not entitled to, meets the definition of “Fraudulent Practice”. In certain cases, where deliberate misrepresentation has occurred, the case may be turned over to the County Attorney’s office where the claimant resides. The County Attorney will make the determination as to whether or not felony charges will be issued on a case by case basis. Overpayments caused by deliberate misrepresentation (Fraud) include a 15 percent penalty.
The claimant will receive monthly billing notices and other collection letters regarding the amount owed. Should the claimant become eligible for future UI benefits, 100% of each weekly benefit payment may be applied to the non-fraud overpayment balance until it is paid in full. Individuals with a fraud overpayment balance due must pay the full balance including penalty, interest and lien fees to be eligible for future benefits.
Collection activities may include, but are not limited to:
- State and/or Federal income tax refund interception
- The Department of Revenue will match social security numbers with individuals who have an overpayment debt payable to IWD
- If the claimant or the claimant's spouse file taxes jointly, their refund may be intercepted to pay the overpayment debt
- lottery intercepts
- vendor payment intercepts
- wage garnishment actions
- UI benefit payment offsets
- voluntary repayment plans
If unable to pay the balance due in full, IWD will work with the claimant to set up a payment plan.
For further information, please contact us at 888-848-7442 (option 4).
Remember to include your full name, address and last four digits of your social security number on all correspondence.
Credit/Debit Card/E-Checks payments may be made online.
Please follow all the directions and complete every blank and section. The following internet browsers must be used in order for the online payment to process: Mozilla Firefox or Google Chrome. The internet browser Internet Explorer (IE) will not work.
IWD will accept payments via check, money order or cashier check payable to Iowa Workforce Development, remit payment to following address:
Iowa Workforce Development
1000 East Grand Avenue
Des Moines, Iowa 50319