• Erica Chan

Overpayment

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What is overpayment?

Overpayment - when you were receive payment from EDD that you are not eligible for

This includes Unemployment Insurance, Disability Insurance and Paid Family Leave


If you received Notice of Overpayment (DE 1444) it means you were paid benefits that you were not eligible for and you need to fix this. If you don't believe this is correct, you will need to call. Phone tips here.


The EDD classifies overpayments into two categories: fraud or non-fraud.

  • Fraud: If the EDD finds that you intentionally gave false information or withheld information and, as a result, received benefits that you should not have received, the overpayment is considered fraud. Withholding or giving false information to obtain benefits is a serious offense that can result in penalties and criminal prosecution. With a fraud overpayment, you can receive a penalty equal to 30 percent of the overpayment amount. Additionally, you can be disqualified for 5 to 23 weeks, called penalty weeks. You must repay fraud overpayments, penalties, and legal action.

  • Non-Fraud: If you received benefits you were not eligible for and the overpayment was not your fault, the overpayment is considered non-fraud. You will receive a notice telling you if the overpayment must be repaid.

More information on overpayments and penalties here


EDD paid me out due to auto certification. What do I do?

If you were paid while they were auto-certifying - see this article here. You can also pay back benefits with methods listed below.


What happens if I don't repay the overpayment quickly?

EDD can deduct the money from your future UI or State Disability Insurance benefits. The EDD can also:

  • Reduce or withhold your federal and state income tax refunds.

  • Reduce or withhold your state lottery winnings.

  • Reduce or withhold other money the State owes you.

  • File a claim against you in court.

  • Charge you court costs and interest.

  • Record a lien on your property.


How do I pay back the money I received from EDD?

Overpayment services here

Useful FAQ's and information on overpayment services here


1. Pay through portal

  • Log in

  • Instead of clicking "UI Online" click "Benefit Overpayment Services"

2. Pay through debit or credit here

3. Pay by phone through Official Payments Corporation (fee applies)

  • Call toll-free 1-800-2PAYTAX (1-800-272-9829).

  • Choose option 3.

  • Enter jurisdiction code 1577 and follow the recorded instructions.

4. Pay by mail

  • Pay by mail using a personal check, cashier’s check, or money order payable to the EDD and include your Claimant ID number (found on your monthly billing statement/payment voucher) (no fee).

  • Mail payments to:

Employment Development Department Attention: Cashier Benefit Recovery PO Box 826806 Sacramento, CA 94206-0001


I don't have a letter ID, how do I enroll for Overpayment Services?

You can register through the portal or call Benefit Overpayment Collection Section at 1-800-676-5737 from 8 a.m. to 5 p.m, Monday through Friday


How do I prevent an overpayment?

You must immediately contact the EDD if you:

  • Returned to part-time or full-time work.

  • Have recovered from your disability.

  • Stopped your Paid Family Leave care or bonding benefit before using the full six weeks.

  • Received wages from your employer.

  • Need to report a date of death for a deceased claimant.

Additionally, if you are receiving Disability Insurance benefits, ensure your employer promptly returns the Notice to Employer of Disability Insurance (DI) Claim Filed (DE 2503) or Notice to Employer of Paid Family Leave (PFL) Claim Filed (DE 2503F). Also, if you recover from an illness/injury or return to work, you need to return the Notice of Automatic Payment (DE 2587) or Notice of Automatic Payment – PFL (DE 2587F) form to the EDD.


For more information about these forms see EDD FAQ's here

Phone tips here

What is a benefit offset?

If you do not repay your overpayment, the EDD will deduct the money owed from your future Unemployment Insurance or State Disability Insurance (SDI) benefits. This process is called a benefit offset. For non-fraud overpayments, the EDD will offset 25 percent of your weekly benefit payments. For fraud overpayments, the EDD will offset 100 percent of your weekly benefit payments. Since the EDD cannot offset the penalty portion of an overpayment from your benefits, you must repay the penalty separately.


What type of legal action will the EDD take to collect my outstanding debt?

The EDD may take legal action, such as:

  • Filing of a summary judgment.

  • Recording of a lien on real or personal property.

  • Serving a wage garnishment.

  • An accounts receivable levy and/or bank levy.


Make sure to report honestly and if you get paid on accident to fix it ASAP!!

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