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Unemployment Info

Frequently Asked Questions about Overpayments

Where do I send payment on my Unemployment Insurance (UI) overpayment?
Mail your payments to:

Department of Workforce Development
Trust Fund Accounting - Overpayment
10 North Senate Avenue
Indianapolis In 46204-2277

Your social security number must be included in all correspondence.

Is money withheld from my wages to pay for UI benefits like for social security?
No. UI benefits come from a tax on your wages paid by your employers. Nothing is ever withheld from your paycheck to pay for UI benefits. A common misconception is that it is "your money", when it is actually money your employers paid to the UI fund. This is also why employers protest when they feel that someone is not entitled to benefits; their account gets charged.

If I disagree with the amount I was held overpaid, how do I appeal or request a waiver?
The overpayment notice cannot be appealed. The overpayment exists as a result of a decision made on your claim, or because of a re-determination of your entitlement. For the overpayment to go away, the original decision and penalty must be appealed and reversed. Waiver of an overpayment exists only under certain conditions. This information can be obtained by contacting Benefit Payment Control (BPC) at 317-233-4838 or 317-233-4839.

Is there any penalty or interest on an overpayment?
An overpayment created because of a decision involving a known failure to disclose or falsifying does have a penalty applied to that amount. Interest can accrue on the unpaid balance of such an overpayment.

What happens if I fail to pay back my overpayment?
You will receive monthly billing notices, you may receive notice of pending civil action, and you may end up in Civil Court, being sued by the state of Indiana.

When do I report my work and earnings, when paid or when I worked?
All income is to be reported when earned, regardless of when paid. This includes vacation pay, severance pay, holiday pay, disability pay, self employment, etc. If you have any questions about whether something should be reported, contact the Customer Support number 800-891-6499

How do I file a claim for Unemployment Insurance benefits?
Initial claims for benefits must be filed on the internet at our Uplink CSS or in person at a WorkOne Center. After the initial claim is taken, weekly claim vouchers may be filed by mail, dropped off at a WorkOne Center, or can be filed on the Internet.

Can I be prosecuted for not reporting my work and earnings?
Yes. Indiana law provides for a finding of fraud for any week in which a "Knowing failure to disclose or falsify concerning any material fact" occurs. Unemployment benefit fraud is covered under the Welfare Fraud Statute, 35-43-5-7. Any amount received up to $250.00 is a Class A Misdemeanor. Anything from $251.00 to $2499.00 is a Class D Felony. Any fraud of $2500.00 or more is a Class C Felony.

Why do I have to pay back more weeks than those that I didn't report earnings in?
Under Indiana law, if a finding of fraud is made, for weeks prior to 07/01/06, the current claim is cancelled at the point of the first week of that fraud. That means that all weeks after the first week are overpaid. Further, no claim can be established based upon wages earned before the last week in which fraud occurs. That can mean that you won't be eligible for another claim for months, or if you had already filed for another claim based on those wages, it will be cancelled and you will be overpaid for those benefits as well.

Will my overpayment be written off if I file bankruptcy?
Bankruptcy will relieve most overpayment debt if included in your bankruptcy filing. However, debts incurred as a result of a fraudulent act are not dischargeable in bankruptcy. This agency will file for an adversary hearing in the Bankruptcy court to ensure that this debt remains. The costs of that action will be added to your debt.

Why am I required to keep track of my job contacts?
You may be required to produce that information for an audit of your benefits. This audit is conducted during the year’s effective period.

If I am filing for benefits, can my overpayment be paid back with current benefits if an appeal is in process?
If the pending appeal is in regards to the issue that caused the overpayment, no collection activity occurs until that issue is decided. Our system will code the overpayment as such. If you have an appeal pending that has something to do with the existence of the overpayment, and current benefits are being used to pay it back, call Benefit Payment Control immediately, at 317-233-5718. Otherwise, interception on current benefits is an automatic process.

How can I make payments?
Payment can be made in person at any WorkOne Center, in person at the Administrative Office in Indianapolis, on line at officialpayments.com or by mail. Payments may be in the form of a personal check, cashier's check, money order, or cash. It is not recommended that you send cash through the mail. There is currently no ability by this agency to accept payments by credit card, debit card, or fund transfers.

Why didn't you just hold my payments until you knew that I was eligible and wouldn't have to pay them back?
Under Federal law, when a person is determined to be eligible for benefits, those benefits must be paid as claimed until a decision denying those benefits is issued. If an original decision allows benefits, the employer has the right to appeal, but that will not stop your benefits. Stopping your benefits without giving you a decision that you can appeal would be denying your due process of law.

Can't you take care of the overpayment by taking that amount right off the top of my claim balance?
No. The benefits in your claim are not payable to you until eligible weeks are claimed. They can only be claimed on a weekly basis, with each week requiring you to meet the eligibility requirements for a payment to be issued. When you claim and are determined eligible for a payment, only then can it be applied to your overpayment. It is not a choice.

Why do you intercept my state tax refund or take my vouchers if I already have a payment agreement?
We are required by law to recover the overpayment using any and all means available. The repayment agreement does not exclude this from occurring. Monies cannot be paid from the UI system when an overpayment exists; payable weeks of UI must be applied to any overpayment before payments can go to you.

If the overpayment is on my spouse's claim, why are you taking my tax refund?
If you are filing your taxes jointly, the Department of Revenue matches any Social Security number on the return with the overpayment tape. It will mark that return for collection. If you disagree with this, you can request that your state tax return be split between your debt and your spouse's debt for purposes of this intercept. However, it is better for the debt to be paid off more quickly, so that if UI benefits are claimed later when needed, they will come to the spouse more quickly instead of having to repay an overpayment.