Benefit Overpayments FAQs

The EDD classifies overpayments as either fraud or non-fraud.

Fraud: If we determine that you intentionally gave false information or withheld information, the overpayment is considered a fraud overpayment. You will have to pay a 30 percent penalty in addition to the overpayment amount. You may also be disqualified for future benefits for up to 23 weeks.

Non-Fraud: If the overpayment was not your fault, it’s considered a non-fraud overpayment. You will receive a notice telling you to repay the overpayment or if we need more information to determine if you were overpaid.

The most common reasons for an overpayment are:

• You incorrectly reported your wages causing you to be overpaid.
• You collected benefits for a week, and we later determined you were not eligible that week.

To help prevent an overpayment, you must notify us if you:

• Returned to work either part-time or full-time.
• Received any wages from your employer.
• Need to report the death of someone receiving benefits.
• Recovered from a disability.
• Stopped PFL benefits before using the full eight weeks.

If you’re receiving disability or PFL, have your employer return 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). If you recover from an illness or injury or return to work, return the Notice of Automatic Payment (DE 2587) or Notice of Automatic Payment – PFL (DE 2587F) to the EDD.

Note: If you are receiving unemployment and return to work full time, stop certifying for benefits.

We primarily use your gross family income to determine if you qualify for a waiver. Gross income is your income before taxes and deductions.

We will review your income for the past six months. You will qualify for a waiver if your average monthly income was less than or equal to the amounts in the Family Income Level Table for that time period.

You can find your Claimant ID and Letter ID on the Benefit Overpayment Collection Notice (DE 8344JUDR). We will mail you the Benefit Overpayment Collection Notice (DE 1444) 30 days after we mail the Notice of Overpayment or Notice of Denial of Benefits and Overpayment (DE 1480), or when an appeal is denied.

Your Claimant ID and Letter ID are also included on the following forms:

• Benefit Overpayment Statement of Amount Due (DE 8301R)
  • Mailed to you 90 days from the mail date of your Notice of Overpayment and every 60 days until your overpayment has been paid in full.
• Final Collection Notice (DE 138)
  • The final billing notice that you will receive for the collection of your overpayment.

If you do not repay your overpayment, the EDD will take the overpayment from your future unemployment, disability, or PFL benefits. This 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 apply the offset towards the 30 percent penalty portion, you must repay the penalty separately.

If the EDD offsets your weekly benefit payments to repay a disability or PFL overpayment, you will receive a Notice of Overpayment Offset (DE 826).

Note: You can log in to UI Online or SDI Online (for disability claims only) to view payment activity, including any payments that have been reduced to cover an overpayment.  To access PFL payment activity you may contact 1-877-238-4373.

If you do not repay your overpayment and are owed a state or federal income tax refund, the EDD will take the overpayment from these refunds per section 12419.5 of the California Government Code. This is known as a tax offset.

You can avoid a tax offset if you repay your overpayment in full before your taxes are offset.

For more information, visit Your Tax Refund or Lottery Money Was Sent to the EDD.

You must complete the Injured Spouse Allocation (IRS Form 8379) and send it to the IRS for review. You may download IRS Form 8379, call the IRS at 1-800-829-3676, or visit a local IRS office. Contact the IRS if you have questions about the form or need help completing it.

Allow four weeks for your offset to be applied.

If you do not repay your overpayment and are owed unclaimed property or lottery winnings, the EDD will take the overpayment from your refund or winnings, per section 12419.5 of the Government Code.

For more information, visit Your Tax Refund or Lottery Money Was Sent to the EDD.

The EDD may take legal action, such as:

• Filing of a summary judgment.
• Recording of a lien on real or personal property.
• Serving of an earnings withholding order.
• Issuing an accounts receivable levy or bank levy.

A summary judgment is a civil action filed with the superior court against the liable person for the recovery of unemployment or disability benefit overpayment debt, per sections 1379 and 2739 of the California Unemployment Insurance Code.

A lien is the legal claim on the property of another person to secure the payment of a debt or an obligation. The EDD will record an abstract of judgment with the County Recorder’s Office which places a legal claim on your property. To release the lien, you must repay the full overpayment amount, including any filing fees and interest.

When refinancing or selling property, you must have all liens cleared. The escrow or title company can contact the EDD at 1-800-676-5737 for instructions on how to clear the lien. The escrow or title company will need the Claimant’s full Social Security number, Date of Birth, Case Number and a copy of the Abstract of Judgement as well as the EDD’s fax number 1-916-464-2477.

The EDD may issue an earnings withholding order to your employer for benefit overpayments if a summary judgment was filed. Your employer may withhold up to 20 percent of your wages and is required to submit the amount withheld to the EDD to comply with the order. Repayment in full is required to satisfy an earnings withholding order.

The EDD may issue a bank levy to your financial institution to withhold funds to apply towards your benefit overpayment.

Yes, visit Benefit Overpayment Services to establish an installment agreement.

If you do not enroll in Benefit Overpayment Services, you can still make a payment online.

If you would like to pay through ACH Debit using your bank account visit e-Services.

There is no fee. Payments submitted weekdays after 3 p.m. PT (except holidays) will be posted the next business day.

Online

Visit the ACI Payments, Inc. website. The system will prompt you for the information needed to make a credit card payment.

To make a credit card payment, you will need the following:

• Social Security number.
• Phone number.
• Email address (only for online payments).
• Credit or debit card number, three-digit security code, and expiration date.
• Credit card billing address (only for online payments).
• Jurisdiction code 1577.

Note: Once you make a payment, you will receive a confirmation number. Keep this confirmation number for your records. If you provide your email address, ACI Payments, Inc. will also email your confirmation number.

By Phone

Call ACI Payments, Inc. at 1-800-272-9829.

The EDD’s jurisdiction code is 1577. ACI Payments, Inc. uses jurisdiction codes to uniquely identify each agency and liability type. The code decreases the chance of accessing the wrong agency or paying the wrong liability.

By Phone

If you do not have the jurisdiction code, ACI Payments, Inc. allows you to enter a California ZIP Code to hear a list of payment types. Select the option California Employment Development Department for a Benefit Overpayment.

Online

If you make a payment online on the ACI Payments, Inc. and do not have the jurisdiction code, select: State Payments, California Employment Development Dept., and Benefit Overpayment.

Yes. ACI Payments, Inc., charges a convenience fee of 2.75 percent for payments made by credit card and 1.75 percent for payments made by debit card, with a $1 minimum. The convenience fee is a charge for using ACI Payments, Inc. credit card service and is not paid to the EDD.

It may take three to five business days for the EDD to receive and process your payment.

To confirm, you can call 1-800-676-5737 five business days after making your payment. When using the automated Interactive Voice Response system, select option 1.

ACI Payments, Inc. for payment information. Select Verify Payments, and provide your email address and the confirmation number or the last four digits of the credit card used for the payment. The information is only available for transactions within the last 12 months.

For phone payments or payments older than 12 months, call ACI Payments, Inc. at 1-800-487-4567.

No. You may choose any method for future payments.

For online payments, visit the ACI Payments, Inc. and select Help for assistance.

For phone payments, call ACI Payments, Inc. at 1-800-487-4567 for assistance.