An overpayment happens when you get unemployment benefits from the N.C. Division of Employment Security (DES) that you need to pay back. There are two types of overpayments:

Non-Fraud

Occurs when DES finds that you got unemployment benefits you were not eligible for, through no fault of your own. You will need to pay back all non-fraud payments.

Fraud

This happens when you purposely give wrong information or do not share important information to get benefits. Some common ways this can happen include:

• Not reporting your earnings when you start a full-time, part-time, or temporary job.
• Not looking for a job while you’re getting benefits.
• Not keeping a record of your work search.
• Intentionally giving incorrect information or leaving out details when you file your claim or weekly certification.
• Not reporting the wages you earned for the week you worked.
• Not reporting the pay you got for training.
• Not reporting severance pay or bonus money.
• Helping others get benefits they are not eligible for.
• Committing identity theft.

Fraud overpayments can lead to serious consequences, like not being able to get UI benefits for one year and penalties being added to your overpayment. DES may collect money to recover your overpayment by:

• Withholding part of your earnings.
• Withholding your federal tax refund.
• Withholding your state tax refund.
• Withholding your lottery winnings.
• Beginning criminal prosecution and/or civil court action.

If you have an overpayment balance while you are getting benefits, DES will cut your benefits by:

• 50% for non-fraud overpayments; or
• 100% for fraud overpayments.

These reductions will go toward paying off your overpayment balance.

What happens if I have an overpayment?

If you have an overpayment, DES will mail you a Notice of Overpayment. The Notice of Overpayment can also be found in your MyNCUIBenefits account. The notice explains why you were overpaid and which weeks it affected.

Audits and Investigations

DES conducts audits of unemployment claims using:

• Information from the North Carolina New Hire Directory (NCNH) and the National Directory of New Hires (NDNH).
• Wage information from employers.
• Tips and leads from others.

If an audit shows that you may have gotten benefits that you should not have, an investigator will look into it, and they will contact you with details.

You can avoid investigations and overpayments by:

• Providing complete and correct information when you file your claim and weekly certifications.
• Actively looking for a new job.
• Keeping a record of your work search(es).
• Reporting all wages for each week you work and claim benefits.
• Reporting wages as soon as you earn them, even if you have not been paid.
• Reporting gross wages (the total amount earned before taxes and other deductions).