What Is An Overpayment?

Overpayments are benefits paid to a claimant that are later determined to have been paid in error. Overpayments occasionally occur when a claimant is allowed benefits and an appeal by an employer reverses the decision. The claimant is then found ineligible for all benefits received. Inaccurate information or an employer's error in reporting your wages may cause an overpayment. Anytime a claimant receives benefits for which he or she is not eligible, the claimant must pay back the same amount of benefits, plus any taxes or deductions withheld. This can be done on a payment schedule. The State of Indiana has the right to withhold state income tax returns and lottery winnings in order to recover any overpayments that have not been collected.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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