What happens if you have an overpayment of unemployment - NYS Department of Labor consequences?
I just got a notice from NYS Department of Labor saying I have an overpayment from my unemployment claim last year. The letter says I owe back $2,800 but doesn't really explain what happens next. Will they take it out of my taxes? Can they garnish my wages if I'm working now? I'm really confused about the whole process and what my options are. Has anyone dealt with this before?
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Natasha Kuznetsova
NYS Department of Labor overpayments can be collected several ways. They can offset your state tax refunds, garnish wages (up to 10% usually), or take future unemployment benefits if you file again. You should have gotten an appeal form with that notice - you have 30 days to contest it if you think it's wrong. The overpayment stays on your record until it's paid off completely.
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Oliver Schulz
•I didn't see an appeal form in the envelope, just the overpayment notice. Should I call them to ask for one?
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AstroAdventurer
ugh this happened to me too last year! they said i didnt report some work hours correctly even though i swear i did everything right. took forever to sort out
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Javier Mendoza
If you can't reach NYS Department of Labor by phone (which is super common), try using Claimyr at claimyr.com - they help you get through to actual agents. There's a demo video at https://youtu.be/qyftW-mnTNI that shows how it works. I used it when I had questions about my overpayment and actually got to talk to someone instead of sitting on hold forever.
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Emma Wilson
•Never heard of that service but honestly anything is better than trying to call NYS Department of Labor directly. Those phone lines are impossible.
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Malik Davis
You can also set up a payment plan if you can't pay the full amount at once. NYS Department of Labor will work with you on that. Don't ignore it though - the penalties and interest add up quickly if you don't respond to the notice.
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Oliver Schulz
•Good to know about the payment plan option. Do you know what the interest rate is?
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Isabella Santos
The whole overpayment system is such a mess. They make mistakes all the time and then put the burden on us to prove we're right. I fought mine for 6 months before they finally admitted their error.
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Chloe Anderson
I went through this exact situation about 8 months ago. The first thing you should do is request all the documentation they used to determine the overpayment - sometimes there are errors in their records. You can request a waiver if the overpayment wasn't your fault (like if they gave you incorrect information). Also, if you're currently working, yes they can garnish your wages, but in NY it's typically limited to 10% of your disposable income. Don't wait too long to respond though - the sooner you contact them, the more options you'll have.
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