Michigan unemployment overpayment collections resume this month - What to know
Michigan to collect $2.7B from workers overpaid during COVID-19
Around 350,000 workers with claims in collections dating back to March 2020 will be required to return benefits. According to the state, the majority of people affected by the collections pause filed claims in 2020 and 2021, during the height of the Covid pandemic.
LANSING, Mich. (FOX 2) - If you were notified a few years ago that you were overpaid by the unemployment agency in Michigan, be prepared for the state to start taking that money back.
Around 350,000 workers with claims in collections dating back to March 2020 will be required to return benefits. According to the state, the majority of people affected by the collections pause filed claims in 2020 and 2021, during the height of the Covid pandemic.
A pause in collections will be lifted Friday, and the first payments will be due Sept. 29. Those who owe money will receive a notification Tuesday in their Michigan Web Account Manager (MiWAM) accounts, followed by a Form 1088 collection notice that will specify the amount owed.
What you can do:
If you owe money, there are two ways to pay back the debt:
- Submit payment through your MiWAM account.Send a check or money order with the Form 1088 Payment Voucher sent on Sept. 15 to: Unemployment Insurance Agency-Restitution, Dept # 771760, P.O.
- Box 77000, Detroit, MI 48277-1760. If not including a Payment Voucher, be sure to write a claim number on the check or money order.
Hardship waivers are available for those who are unable to make payments.
The fastest way to apply for a financial hardship waiver is through their MiWAM account. A hardship waiver request can also be submitted using Form 1795 Request to Waive Repayment of Benefit Overpayment Balance at Michigan.gov/UIA.
The Unemployment Insurance Agency will ultimately decide if someone qualifies for a hardship waiver, and overpayments will not be waived on claims where there have been findings of fraud.
"We understand the impact these collections will have on household budgets. That is why we are providing notice and information about applying for a financial hardship waiver," said Jason Palmer, UIA Director. "At the same time, we are legally obligated under the Michigan Employment Security Act to seek repayment and we must fulfill our responsibility to ensure taxpayer money is returned to the Unemployment Insurance Trust Fund, so workers can count on money being available if they need it in the future."
Dig deeper:
The people impacted were previously notified that they owed the money back. However, collections were paused while a class action lawsuit against the unemployment agency was handled in court.
That lawsuit, Saunders v. UIA, was recently settled.
The Source: This information is from the State of Michigan.