Unemployment Benefits - Overpayment? (2009, find a job, high school)

[alexmn]

I hope there is someone on this forum familiar with how unemployment benefits are calculated:

I got laid-off 14 months ago, have been hectically seeking work, any decent kind but to no good avail, and currently about to exhaust my extended unemployment benefits. I used to make 105,000/yr and my weekly benefit amt was determined as 494.00/wk (and 12,848/yr) which I thought was too less (as I heard from other folks that benefits are around 40% of salary).

I recently received a notice of overpayment and NC is asking to re-imburse a significant sum, since they claim my benefits should'v been instead 476.00/wk. In addition they are also saying I have been overpaid few weeks.

I'd admit I'm not good at finance, could folks that are in my similar salary bracket:
a) isn't 494 (or as they are now saying 476/wk) too low. Could there be an error in their computation.
b) as my benefits including extended benefits are almost expired, what else options I have, if I still do not find a position.

Thanks all.

[jmana]

I think there is a maximum amount they pay despite what you were making before. I was in the same boat as you, laid off for 12 months, and I just got an overpayment notice also, this isn't the first one I've got. In fact, when I was unemployed, I was constantly bombarded with letters about my benefit amount changing, so it's nearly impossible for a normal person to determine what is the correct amount. Personally I think they should get their act together because it is really frustrating to have to pay them back several months after the fact when they decide they paid you too much.

[frogandtoad]

Originally Posted by jmana

I think there is a maximum amount they pay despite what you were making before. I was in the same boat as you, laid off for 12 months, and I just got an overpayment notice also, this isn't the first one I've got. In fact, when I was unemployed, I was constantly bombarded with letters about my benefit amount changing, so it's nearly impossible for a normal person to determine what is the correct amount. Personally I think they should get their act together because it is really frustrating to have to pay them back several months after the fact when they decide they paid you too much.

Not only that, but they have it both ways in the gov't with this!! So I had an employee who, when calling in her hours (silly me for trusting her) was padding her hours every pay period. It took me a while to realize it but once I did, I realized I"d been paying her for about 3 hours/week more than she worked. I of course requested her pay it back and she refused. I then called the labor board (or whatever it is called) and they told me that even though I could prove it was fraud (I had only signed off on the correct # of hours), once I had paid her, it was over and done with. I had no recourse, short of suing her, to get the money back. She was not legally obligated to return it.

How nuts is that??? I was not about to get into suing her, but on the one hand, they won't let you get money back which is rightfully yours when you overpay, but they make you return money when they overpay??

[jdljr]

Originally Posted by alexmn

I hope there is someone on this forum familiar with how unemployment benefits are calculated:

I got laid-off 14 months ago, have been hectically seeking work, any decent kind but to no good avail, and currently about to exhaust my extended unemployment benefits. I used to make 105,000/yr and my weekly benefit amt was determined as 494.00/wk (and 12,848/yr) which I thought was too less (as I heard from other folks that benefits are around 40% of salary).

I recently received a notice of overpayment and NC is asking to re-imburse a significant sum, since they claim my benefits should'v been instead 476.00/wk. In addition they are also saying I have been overpaid few weeks.

I'd admit I'm not good at finance, could folks that are in my similar salary bracket:
a) isn't 494 (or as they are now saying 476/wk) too low. Could there be an error in their computation.
b) as my benefits including extended benefits are almost expired, what else options I have, if I still do not find a position.

Thanks all.

$494 is the maximum weekly benefit amount, regardless of your income. You should consider yourself lucky...many states' maximums are FAR below the $494. You should also be receiving the extra $25 weekly from the stimulus package that was passed. Without looking at your claim, I can't say why the overpayment occurred...except that $476 USED to be the maximum amount and then sometime in the past they increased it to $494. Maybe it has to do with that. Or maybe they used the wrong quarters when calculating your benefit. Not sure. But, you can go into your local ESC office and request a waiver of overpayment, which will have to be ruled upon. They may waive it since the overpayment occurred (assumingly) due to nothing fraudulent on your part.

Seeing as it sounds like you did not work at all in 2008, you likely would not be eligible to open a new benefit year when your benefit year expires. However, if you still have a balance of benefits left but your benefit year runs out, you should ATTEMPT a new claim (even if it will not set up) and they may then go back and set up a new benefit year, based on your previous/original base period, just to allow you to draw your remaining benefits. Some people's year runs out before their benefits do. Other people's dollars run out before their year does. It just depends on each person's circumstance, whether they worked at all while their claim is in effect, whether they were eligible for extensions, etc.

Unfortunately, UI Benefits do not go on forever. There is an end. Some people do draw longer than you have, but it all depends on when they start their claim and how many quarters of wages they have in the base period. Some people who draw regular UI also don't qualify for the extensions, so they draw for far less time than you have.

Good luck to you, I hope everything works out for you.

[dragonfly0428]

Ewwwww...I am NOT liking this thread! I just started getting unemployment benefits. They don't send me enough to send any back!

[alexmn]

Originally Posted by jdljr

Seeing as it sounds like you did not work at all in 2008, you likely would not be eligible to open a new benefit year when your benefit year expires. However, if you still have a balance of benefits left but your benefit year runs out, you should ATTEMPT a new claim (even if it will not set up) and they may then go back and set up a new benefit year, based on your previous/original base period, just to allow you to draw your remaining benefits. Some people's year runs out before their benefits do. Other people's dollars run out before their year does. It just depends on each person's circumstance, whether they worked at all while their claim is in effect, whether they were eligible for extensions, etc.

Thanks a lot for this great insight.

[klips28]

Originally Posted by jdljr

$494 is the maximum weekly benefit amount, regardless of your income. You should consider yourself lucky...many states' maximums are FAR below the $494.

I was also informed that 476 was the max...which is true?

I had a question about UI benefits as well...
My benefit year expired yesterday...will I get a payment for last week or not?...Extended benefits still remain how do I get those or do I?...I saw a quote from the Deputy Director of the Department that handles UI benefits who said that some people have up to 79 weeks of UI benefits...when I went online to file for last weeks benefits I went through the steps and at the last step where it would normally confirm my filing it said "Your benefit year has expired." That was all it said.

It's not that I enjoy being out of work I have 2 children, my husband works, but is salaried therefore limited in his earning capacity--he used to get bonuses once a month or so--but his employer can't afford that anymore. After 10 years of making $65K a year or more, you become overqualified for everything...McD's prefers to hire a high school kid who they pay minimum wage as opposed to hiring an adult who asks for a little more--I even have 3 years experience...I worked there all through high school. I would go back to school but no funds for that either. It's crazy out there and I wonder just what happened to all those funds that employers have been paying all these years...I see that NC is on the verge of borrowing from the fed to maintain UI benefits.

I'd much rather be able to find a job than draw $400 a week (after taxes withheld...don't know if I'll be able to pay taxes on it next year). I wish that all those idiot politicians would just just shut up and quit doing anything just sit there doing nothing...if they would do that the economy would turn around overnight...nothing like scaring the crap out of people everyday to kill the economy.

Every dark cloud has a silver lining...let's see it!

[jdljr]

Originally Posted by klips28

I was also informed that 476 was the max...which is true?

I had a question about UI benefits as well...
My benefit year expired yesterday...will I get a payment for last week or not?...Extended benefits still remain how do I get those or do I?...I saw a quote from the Deputy Director of the Department that handles UI benefits who said that some people have up to 79 weeks of UI benefits...when I went online to file for last weeks benefits I went through the steps and at the last step where it would normally confirm my filing it said "Your benefit year has expired." That was all it said.

It's not that I enjoy being out of work I have 2 children, my husband works, but is salaried therefore limited in his earning capacity--he used to get bonuses once a month or so--but his employer can't afford that anymore. After 10 years of making $65K a year or more, you become overqualified for everything...McD's prefers to hire a high school kid who they pay minimum wage as opposed to hiring an adult who asks for a little more--I even have 3 years experience...I worked there all through high school. I would go back to school but no funds for that either. It's crazy out there and I wonder just what happened to all those funds that employers have been paying all these years...I see that NC is on the verge of borrowing from the fed to maintain UI benefits.

I'd much rather be able to find a job than draw $400 a week (after taxes withheld...don't know if I'll be able to pay taxes on it next year). I wish that all those idiot politicians would just just shut up and quit doing anything just sit there doing nothing...if they would do that the economy would turn around overnight...nothing like scaring the crap out of people everyday to kill the economy.

Every dark cloud has a silver lining...let's see it!

At the time you filed 12 months ago, $476 was the max. Sometime in the 12 months since you filed, the max has increased to $494.

Yes, you should be able to be paid for last week IF your benefit year expired yesterday (you may have to have ESC take the week "on paper" and file it for you). If your benefit year actually expired the week before, and you were notified as such yesterday when you tried to file, then no, you would not be paid for this past week.

You will need to contact ESC ASAP to find out if you are eligible to file a new claim (new benefit year). If you do it this week and are eligible you will have to serve a new waiting week, but then benefits should pick up the following week. If you have sufficient wages in the base period (right now all four quarters of 2008 and you must have a total of around $4,500 spanning at least two of those quarters) you will be able to file a new claim. Wages in just one quarter of the base period does not qualify you to file a claim. And be aware, it's highly unlikely that your weekly benefit amount for a new claim will be the same as what you've been drawing on your old claim. It's possible, but it's all based on the highest quarter of wages in the base period used to file your claim. Conceivably, it could be less than what you've been drawing for the last 12 months.

If extended benefits (EB) remain and you are eligible for a NEW benefit year, you will not get those remaining EB benefits. Instead, you will begin a new claim with regular UI. If you are NOT eligible for a new benefit year, you must ATTEMPT a new claim, even if it will not set up, then they may set up a new benefit year for you based on your original/prior base period and let you draw your EB. In that case, after you've drawn your remaining EB, you will be able to draw no further benefits.

If you are eligible for a new benefit year and will receive a new pot of regular UI money, be aware that not everyone qualifies for extensions after their regular UI runs out. Your base period wages must equal 1 1/2 (one and one half) times the high quarter in your base period to qualify for any of the extensions. If you're eligible and it comes time to start drawing from the extensions, usually it just kicks in automatically...you keep filing each week as you normally would and the changing from one pot of money to another is transparent. If you can not satisfy the 1 1/2 times requirement, then when your regular UI ends, you will be able to draw no further benefits.

BTW, North Carolina has been borrowing money from the feds to pay UI for a few months. We already owe the feds back about $600 Million. With the unprecedented number of people drawing UI in NC and the nation, it's not surprising that our UI fund could not sustain itself. We're not the only state that has had to borrow from the feds to pay UI.

Also, and it won't help much, but will help a little. In 2009, the first $2,400 in UI benefits is not taxed by the feds. Compliments of the Stimulus package, as is the extra $25 per week you're receiving on top of your regular weekly benefit.

[klips28]

I made about 23K between Jan 1 08 & May 30 08. The benefit year actually ended 6-20-09 & began 6-22-09.

The 2400 without taxes does that come in to play when I file taxes @ the end of the year because they still withheld funds.

I kind of understand about the high quarter and 1 1/2 times and think if I am correct, let's say I made around 14,000 in qtr 1 and 9,000 in qtr 2 for total of 23k then that should qualify...if I understand correctly I would have had to make 21K based on 14k q1...right?

They certainly don't want to make it easy do they?

[jdljr]

Originally Posted by klips28

I made about 23K between Jan 1 08 & May 30 08. The benefit year actually ended 6-20-09 & began 6-22-09.

The 2400 without taxes does that come in to play when I file taxes @ the end of the year because they still withheld funds.

I kind of understand about the high quarter and 1 1/2 times and think if I am correct, let's say I made around 14,000 in qtr 1 and 9,000 in qtr 2 for total of 23k then that should qualify...if I understand correctly I would have had to make 21K based on 14k q1...right?

They certainly don't want to make it easy do they?

Yes, the tax issue should come into play when you file your 2009 taxes. ESC will not withhold taxes on UI unless specifically requested. If requested, it's an automatic 10% for fed and whatever percentage you tell them for state.

You're right with your computation. Your high quarter of $14,000 would be used to compute your weekly benefit amount (take your high quarter of earnings and divide by 26. Any number over $494 just gets paid the $494 since that is the maximum weekly benefit). Then, to calculate whether you'd be eligible for an extension, your total base period wages would need to equal 1 1/2 times your high quarter.

A word of advice...you'll want to get in and file your new claim ASAP if you haven't already. Beginning July 5th the base period changes and claims filed with that effective date and later will have the first quarter 2008 fall off and not be included, instead picking up first quarter 2009. So in that scenario, your $14,000 quarter will not be able to be counted, AND, if you had no wages beyond your $9,000 second quarter, you would not qualify to file a new claim, since you would not have wages in at least two quarters of the base period.