Americans hit with September 29 deadline to repay $2.7B in ‘overpayments’

AMERICAN workers are being faced with an upcoming September 29 deadline to repay a whopping $2.7 billion in overpayments.

Hundreds of thousands of individuals who were overpaid unemployment benefits must begin paying the cash back before this month comes to a close.

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Hundreds of thousands of workers will soon be required to pay back the unemployment benefits they were overpaid[/caption]

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The workers owe $2.7 billion in overpaid employment money[/caption]

Tens of billions of dollars in unemployment benefits go out annually to provide temporary financial assistance to Americans out of work so that they can afford basic needs during their job search.

These benefits generally replace a portion of a worker’s previous earnings, often 30% to 50%, up to a state-determined cap.

However, states sometimes overpay unemployment benefits for reasons such as administrative errors, mistakes on the claimant’s part, or incorrect eligibility determinations. 

Hundreds of thousands of workers, for example, received notice a few years back that they were paid more money than they were owed by the unemployment agency in Michigan – and the state plans to soon begin recollections.

The overpayment collections were temporarily halted due to a class action lawsuit against the unemployment agency, but the pause will be lifted on Friday, per a local Fox outlet.

Those who were overpaid will be required to start repaying their benefits at the end of the month, with the first payments due on September 29.

The recollection process will impact roughly 350,000 workers with claims in collections dating back to March 2020.

Most of the people impacted by the collections pause filed unemployment claims in 2020 and 2021, during the pandemic’s peak, according to the state.

Workers who were overpaid should have received a notification on Tuesday in their Michigan Web Account Manager, or MiWAM, accounts, followed by a Form 1088 collection notice indicating how much they owe. 

HAND IT OVER

Workers who were overpaid benefits by the unemployment agency in Michigan have two options to pay back the debt.

The first method is to pay online via their MiWAM account and submit payment electronically.

Workers can also opt to pay by mail, sending a check or money order along with the Form 1088 Payment Voucher to the unemployment agency.

For Michigan workers unable to repay the benefits they owe, they can apply for a hardship waiver through their MiWAM account.

Americans can also submit a hardship waiver request using Form 1795 Request to Waive Repayment of Benefit Overpayment Balance at Michigan.gov/UIA.

The Unemployment Insurance Agency will ultimately determine if an individual is eligible for a hardship waiver.

Overpayments will not be waived in cases where there have been findings of fraud. 

“We understand the impact these collections will have on household budgets. That is why we are providing notice and information about applying for a financial hardship waiver,” said Jason Palmer, UIA director.

“At the same time, we are legally obligated under the Michigan Employment Security Act to seek repayment and we must fulfill our responsibility to ensure taxpayer money is returned to the Unemployment Insurance Trust Fund, so workers can count on money being available if they need it in the future.”

With the US unemployment rate rising, job seekers are forking out $10,000 on “consultants” in their hunt for work.

Meanwhile, Americans in a key US state will get up to $1,423 a week under a new paid leave law.