Refunds and Exemptions for Overpayments: FAQ Guide Part 1
If you have received unemployment benefits to which you are not entitled, understanding the processes for returning overpayments or requesting waivers is crucial. This article provides answers to common questions about overpayment refunds and waivers, differentiating between federal and state benefits.
Question 1: I cannot return these funds. Can you request an exemption?
If you are unable to repay the overpaid amount, a waiver may be an option. However, application rules and processes vary for federal and state benefits.
State Benefits:
- Eligibility for a waiver includes situations where the claimant is not at fault and:
- The claimant is deceased.
- The claimant is disabled and can no longer work.
- Return would cause undue financial hardship.
To request an overpayment waiver of New Jersey unemployment benefits, complete Form BPC-9 and mail it with supporting documentation. If you are disabled, please also submit the Disability Certification form. A determination will be sent by regular mail, and appeals can be filed if necessary.
Federal Benefits during the COVID-19 Pandemic (CARES Act):
- A claimant may be eligible for a waiver if he or she is not guilty and the return is against equity and good conscience.
- To request an overpayment waiver related to the CARES Act, log into your account, submit the request, complete a questionnaire, and wait for an email determination. Appeals can be filed if necessary.
Question 2: How can you avoid collection activities against you?
To avoid collection activities, repay the debt in full or establish a monthly payment agreement. The BPC-404 email provides details on the required monthly payments. An online payment system is also available.
Question 3: Why do you have an overpayment on your claim if you filed last week?
Previous overpayments may lead to recovery of benefits on your current claim. Understanding this process is essential to properly manage your benefits.
Question 4: Can you enter into a formal agreement if you are currently receiving unemployment benefits?
No, under New Jersey Unemployment Compensation law, available benefits must be used to recover outstanding debts. Monthly agreements will not prevent this, and once core benefits are restored, any remaining balance will be the responsibility of the claimant.
Question 5: Why are your New Jersey state taxes and refunds withheld?
Outstanding responsibilities to the agency may result in withholding of state tax refunds and refunds. To avoid sign a formal payment agreement and make monthly payments.
Question 6: Did you return your unemployment payment? Why do you still owe a balance?
Returning a payment does not take into account deductions already submitted on your behalf. Repayment is required for any withheld deductions, ensuring that the full gross weekly benefit rate is covered.
Understanding the overpayment and waiver refund processes is crucial for people navigating unemployment benefits, whether at the state or federal level. Being aware of eligibility criteria, application procedures, and repayment options can help claimants manage their financial situations effectively. For more detailed information and additional questions, see Part 2 of this guide on our website.