Ask Terry Questions Repaying back Federal Additional Compensation

Repaying back Federal Additional Compensation

By Terry Savage on May 05, 2021 | Wild Card

Hi Terry,
I watch WGN, and on 2-24-21, I remember hearing you talking about repaying back the federal money that was a supplement to unemployment compensation and something to the effect that they don’t want their money returned.

My question is, IDES is trying to say I owe for 2 weeks from 5-16 and 5-23-21 the amount of $1,200, as I have a 6-2-21 circuit court date fighting this appeal in the meantime and not knowing what the final outcome will be, if they determine I’m ineligible, does the federal government require you to pay back that money of the $600 per week x 2 weeks. I am still an unemployed server and when I asked them for a hardship waiver they told me because they were regular benefits I would have to pay them back to the federal government, and that there was no such thing as a hardship waiver for people filing for regular benefits.

If you could just clarify for me so I understand what my options are, as I have to address this situation by mail by 5-13-21. So appreciated.

Thank you,

Terry Says

I think you have a few things mixed up here. The Federal government said the STATES do not have to collect overpayments, and return them to the Federal government. (this has nothing to do with the additional Federal benefits.)

Were you on traditional unemployment or PUA benefits? It does make a difference. (see below)

Why does IDES say THEY overpaid you and claim you were ineligible? Did you fail to certify? Did you have other employment? If you were truly out of work, you should win your appeal.

And here’s what the IDES website says about their requests to return PUA payments that were overpaid through IDES own fault (not through fraud on the part of the applicant). So if it was PUA, you should demand a waiver so you don’t have to repay.
If it was traditional unemployment, you need to demand a REASON for them to ask for the money back — and then be ready to refute that reason (with proof that you were seeking a job during that period, that you certified, etc)>

BELOW IS FROM THE IDES WEBSITE:

PUA Overpayments
What is an overpayment?
Overpayments generally occur due to under-reporting of wages when certifying, or when a claimant is subsequently found not eligible for benefits already received. If IDES has determined that you have been improperly paid unemployment insurance benefits, the amount of the overpayment will appear on the Notice of Overpayment of PUA Benefits.

Is it possible to waive an overpayment?
The federal Continued Assistance Act, signed into law on December 27, 2020, provides states the ability to waive recovery of Pandemic Unemployment Assistance (PUA) overpayments in the event the overpayments were established through no fault of the claimant; and the recovery of the overpayment would be against “equity and good conscience.” If an overpayment was established on your PUA claim, you will receive a Request for Waiver of Recovery of PUA Overpayment Questionnaire by email or mail, depending on your PUA correspondence preference. To be considered for a waiver, you must complete and return the questionnaire in full by providing clear, detailed responses to each question.

Approval of the waiver will be based on the information you provide on the questionnaire. If additional information is needed to make a determination, you will be contacted by an IDES representative.

What options do I have if my PUA overpayment waiver request is denied?
You will have the right to appeal the determination.

I already repaid part or all my PUA overpayment. If I am successfully granted a waiver, will I get this money back?
Yes. If your waiver request is approved, any overpayment of benefits prior to the effective date of the approval will be removed from your overpayment balance and you will be paid back any monies that you repaid or that were recouped from benefits.

money

ASK TERRY

a personal
finance question