The United States Department of Labor has updated their most current unemployment benefits overpayment data, ranging from Q2 2017 to Q1 2018. The overpayment rate is a percentage calculated by dividing the overpayment amount, by the total benefits amount paid. The lowest state is Hawaii at less than 3%, while the highest is Michigan at almost 45%. When unemployment benefits are overpaid to a claimant, they are required to pay the overpayment amount back to the state.
Overpayment can be attributed to reporting inaccurate earnings, and providing incorrect or false information about the job separation among other things. Maintaining accurate and detailed records of employee information like start and end dates, wages, etc. is important because it may be required to prove a claimant received benefits they weren’t entitled to.
The state unemployment benefit overpayment rates are below:
There were over $3.5 billion in overpaid benefits during this period, emphasizing how important it is for employers, claimants, and State unemployment agencies to do their best to prevent overpayment.