Audits and Overpayments

Are unemployment insurance claims audited?

Yes. Audits are generally done by comparing databases gathered from employers and tax agencies about who is earning money in Maryland.

If the Division of Unemployment Insurance finds that you received benefits that you weren’t entitled to, you will be responsible for repaying those benefits to the state.

If the Division of Unemployment Insurance finds that fraud occurred, there may be additional penalties and interest that you will have to pay. If it’s determined that you have committed fraud, you are ineligible to apply for unemployment benefits for 1 year and must repay the overpayment before being able to collect again. In some cases, there are additional consequences including being guilty of a misdemeanor and being subject to a fine and/or imprisonment.

Learn about fraud.

What is an unemployment insurance overpayment?

An overpayment is when a claimant receives a benefit payment they weren’t qualified to receive. Common reasons for overpayments are:

You weren’t able or available to work or actively seeking work while receiving unemployment insurance benefits.
You returned to work but continued to receive unemployment benefits.
You returned to work and received backpay for the time when you were not working (e.g., employees who were on furlough and received backpay).
You filed for benefits while working.
You did not accurately report your earnings.
You didn’t report other payments, such as wages, severance, pension, annuity, or vacation pay, when filing your initial claim or completing your weekly certification.
You claimed unemployment insurance benefits in more than one state or district.
You received a decision that you were eligible for benefits, which was reversed on appeal from your employer.

What should I do if I get an overpayment?

If you are overpaid, you will receive an overpayment notice via mail. You will also get a notice in the Maryland Unemployment Insurance Portal (BEACON).

This notice will include the reason(s) why you were overpaid, how much you owe, and how to file an appeal.

If you notice that you received an overpayment, please contact us.

Note: If your overpayment is related to an active appeal or you have applied for a waiver, you do not need to make a repayment until you’ve received a final decision from the Division of Unemployment Insurance.

How do I pay back the overpayment?

You can repay your overpayment on the Maryland Unemployment Insurance Portal (BEACON):

Go to the “Action Items” section.
Select “Pay Now” under the overpayment balance.
Follow the prompts to make the payment.

Screenshot of the Maryland Unemployment Insurance Portal (BEACON) website page that displays if you have an overpayment balance.

If you can’t repay it all at once, you may be able to set up a repayment agreement to pay in monthly installments. You can request this in the Maryland Unemployment Insurance Portal (BEACON):

Select “Benefit Payment” from the left menu.
If you qualify for a repayment plan, there will be a link titled “Payment Plan.”
Visit that link and follow the instructions.
Each month, you will receive a Benefit Overpayment Statement showing how much you owe and your previous monthly payments (received prior to the 25th of the month).

If you are unable to do this online, you can contact a claims agent.

What if I can’t afford to pay back the overpayment?

If you can not pay back the overpayment you received, you may qualify for a waiver.

If you (the claimant) received an overpayment of unemployment benefits and can’t repay it, you can request a waiver. If your waiver request is approved by the Maryland Division of Unemployment Insurance, you won’t have to pay back the money.

For the your request to be approved, all of the following must be true:

The completed request for a waiver form must be submitted within 30 days of the date on the overpayment notice.
The overpayment cannot be due to fraud.
You cannot be at fault for the overpayment. For example, you may be at fault if you accepted more money than you were owed when you knew or should have known that the amount was incorrect, or if you failed to provide information that you should have known would have resulted in a lower amount of benefits paid.
The overpayment must be the result of agency error, employer error, or the result of a new agency decision (also called a re-determination) or an appeal decision.
The overpayment cannot be over 1 year old (unless pending appeal outcome).
You must lack the ability to repay now and in the foreseeable future or your income is likely to be below the Federal minimum poverty level for your family size and where you live, and likely to remain there. The current Federal minimum poverty levels are listed on the waiver request form.

Note: If you can’t make the repayment due to a medical reason, you must include that information in your request.

You can complete this form to request for a waiver of unemployment insurance overpayment and submit it via email or mail as instructed on the form.

Source: Code of Maryland Regulations (COMAR) 09.32.07.04-08

If you can not repay the overpayment all at once, you can set up a repayment agreement to pay in monthly installments. You can choose to do this in the Maryland Unemployment Insurance Portal (BEACON) or contact a claims agent.

Can I appeal an overpayment?

Yes. You may appeal an overpayment decision to the Lower Appeals Division by using the Maryland Unemployment Insurance Portal (BEACON) or by email or letter. You must file an appeal within 15 days of the date on your overpayment notice.

To file an appeal online:

Log in to the Maryland Unemployment Insurance Portal (BEACON).
Select "Correspondence" from the left menu.
Select the “Search” button.
If there is a decision that you can appeal, there will be a “File Appeal” link on the end of the row of that decision notice.
Select the "File Appeal" link and fill out the form.
At the end of the process, you will be issued an appeal number. If you have to contact us about your appeal, please have that number ready.

To file an appeal via email or letter, include your:

Name exactly as it is on the decision notice
Claimant ID number
Telephone number
Date on the decision notice
Statement about why you disagree with the decision

Email your written appeal to UILowerAppeals.Labor@maryland.gov or mail it to:
Maryland Department of Labor
Lower Appeals Division
2800 W. Patapsco Avenue
Baltimore, MD 21230

If you have any questions, contact us.

Who manages audits and overpayments?

The Benefit Payment Control in the Division of Unemployment Insurance promotes and maintains the integrity of the unemployment insurance program through detection, investigation, establishment, and recovery of unemployment insurance overpayments made to claimants. If you have questions about audits or overpayments, contact us.