Frequently Asked Questions (FAQs) - UI Benefit Payment Control (BPC) - Unemployment Insurance
- What is an unemployment insurance overpayment?
- Why am I overpaid?
- What is a repayment agreement?
- What is an unemployment insurance Overpayment Waiver?
- What if I am overpaid unemployment insurance benefits in another state and filed a Maryland unemployment insurance claim?
- What is unemployment insurance fraud?
- What is a fraud overpayment?
- What is a fraud penalty?
- I was determined to have committed fraud because I worked part-time and had unreported earnings which were less than my weekly benefit amount. Why do I have to repay the entire weekly amount and not just the partial amount?
- What other resources are available if I am not eligible/disqualified for unemployment insurance benefits?
1. What is an unemployment insurance overpayment?
An overpayment occurs when a recipient (claimant) of unemployment insurance benefits receives a benefit payment to which the claimant is not entitled. The claimant is notified of an overpayment via the Notice of Benefit Overpayment (sent via a claimant’s preferred communication method ), which will include the total amount of overpaid benefits. Overpayments can occur due to a penalty resulting from: employment separation; changes in a claimant's availability for work; audit results; unreported/underreported wages reported by employer; and appeal decisions reversing eligibility, among other reasons.
2. Why am I overpaid?
The Notice of Benefit Overpayment will include the reason that you are overpaid, the weeks in which you were overpaid, the sections of the law, and the total amount of the overpayment.
3. What is a repayment agreement?
A repayment agreement allows you to pay the overpayment balance in monthly installments, if you are unable to pay the full amount of the overpayment. Information about the repayment agreement is included in the Notice of Benefit Overpayment.
To establish a repayment agreement, log in to your BEACON 2.0 portal and select Benefit Payment from your portal left menu. If you are eligible for a repayment plan, there will be a link titled “Payment Plan.” Each month you will receive a statement reflecting your monthly payments received prior to the 25th of the month, and your remaining balance.
4. What is an unemployment insurance Overpayment Waiver?
You can apply to have the Maryland Division of Unemployment Insurance waive your overpayment.
See the Overpayment Waiver Criteria page for qualifications and waiver application.
5. What if I am overpaid unemployment insurance benefits in another state and filed a Maryland unemployment insurance claim?
Maryland is part of the Interstate Reciprocal Overpayment Recovery Arrangement (IRORA), which allows participating states to recover overpayments for each other. If you filed for unemployment insurance (UI) benefits in Maryland and another state requests that Maryland help recover your overpayment debt to them, Maryland will intercept your Maryland UI benefit payments and send those benefit amounts to that requesting state. You must address any questions, appeals, or other repayment arrangements regarding that state's debt with the other state.
6. What is unemployment insurance fraud?
If you knowingly make false statements, misrepresent or fail to give important facts in order to obtain
or increase unemployment insurance (UI) benefits, you may be determined to have committed UI fraud. If you make an honest mistake in giving information when you file your claim, notify a claims agent at 667-207-6520 as soon as you discover the mistake in order to avoid penalties.
To request a UI fraud investigation, please call 1-800-492-6804 or download/submit the following document, Request For Investigation of Unemployment Insurance Fraud.
Request for Investigation of Unemployment Insurance Fraud (Spanish).
7. What is a fraud overpayment?
A fraud overpayment is the amount of unemployment insurance (UI) benefits paid for any week(s) in which it is determined that you were fraudulently filing for UI.
8. What is a fraud penalty?
If you were determined to have committed UI fraud, you may be subject to penalties including a $1,000 fine, imprisonment, or both. In addition, you will be disqualified from receiving UI benefits for one calendar year. Any overpayment(s) resulting from fraud will be assessed a 15% fraud penalty and a monthly 1.5% interest penalty (18% per year) on the unpaid overpayment balance.
9. I was determined to have committed fraud because I worked part-time and had unreported earnings which were less than my weekly benefit amount. Why do I have to repay the entire weekly amount and not just the partial amount?
If it is determined that you committed UI fraud, then you are penalized for the full week of UI benefit entitlement. For a non-fraud overpayment, you may repay a partial week of benefit entitlement.
10. What other resources are available if I am not eligible/disqualified for unemployment insurance benefits?
- The Maryland Workforce Exchange (MWE) has several resources to help you find a job, including job listings, résumé assistance, virtual recruiter, labor market information, information about apprenticeships, training and educational programs, skills assessments, and many more.
You can access MWE online or in-person at a Maryland American Job Center.
- Visit one of Maryland’s American Job Centers, where trained counselors can assist you with your work search and training needs.
- For information about additional state services which may benefit you, see Maryland Social Services - Department of Human Resources Financial Assistance