Are there penalties or interest on overpayment amounts?
If you have an overpayment, it means that the Kansas Department of Labor (KDOL) has determined that you obtained Unemployment Insurance (UI) benefits in excess of the amount that might otherwise have applied. There can be several causes of overpayment but the most common is a determination, at a hearing or an appeal, that you were not qualified to receive UI benefits which had already been provided to you. Overpayments can also be due to fraudulent UI claims.
null Are there penalties or interest on overpayment amounts?
Legislation KSA 44-706 permits KDOL to assess a “penalty in the amount equal to 25 percent of the amount of benefits unlawfully received” upon “an individual who has knowingly made a false statement or representation or who has knowingly failed to disclose a material fact to obtain or increase [UI] benefits ...”. These are generally referred to as “fraud” cases. The failure to fully report or accurately disclose wages or earnings for any time benefits are paid or delivered is fraud. KDOL actively investigates fraud. Fraud can lead to prosecution.
If a fraud determination has been made, interest accrues from the date of final determination. Interest at the statutory rate of 18 percent per year may accrue on penalties assessed.
Non-fraud overpayments accrue interest on unpaid balances remaining unpaid two years after the date the overpayment was established.