What happens if I fail to repay the overpayment?
null What happens if I fail to repay the overpayment?
KDOL has the authority to recover any unpaid Overpayment Account balance under KSA 44-717 & 719. The authority includes:
- A lien (seizure of property),
- A levy (tax, fee, or fine),
- A civil action in court,
- Garnishment of wages, and
- Issuing a warrant.
KDOL may pursue more than one overpayment recovery method at any time. Whether in Kansas or out of state, future UI benefits may be reduced to repay the claimant's overpayment obligations.
Also, if the overpayment involved fraud, 100 percent of their future UI benefits may be applied to repay the UI overpayment.
KDOL may assert repayment through the Kansas Department of Administration's Setoff Program for state tax refunds or other payments made to the claimant through Kansas state agencies.
The United States Treasury Offset Program (TOP) provides that under specified conditions, KDOL may obtain all or part of an individual’s federal tax refund or other federal payments to be applied to their overpayment obligations. Therefore, maintaining a zero Overpayment Account balance is in the claimant's best interest.