Frequently Asked Questions about Unemployment Insurance Overpayments

I received a Determination of Overpayment. What does this mean?

When a new claim is filed for unemployment benefits, a Deputy from the Department of Economic Security (DES) Unemployment Insurance (UI) Administration conducts fact-finding to determine eligibility, which may involve contacting you (the claimant), the employer, or both. If you are paid benefits and later found ineligible based on the facts of the case, and application of the state and federal laws, rules, and regulations, DES will issue a Determination of Deputy notice. This notice includes the facts surrounding the existence of an overpayment, such as the reason why DES determined you were not eligible for the benefits you received, and the classification of the overpayment (i.e., fraud, non-fraud, or administrative (see below for descriptions of each overpayment type)). This decision will result in a Determination of Overpayment. This is a notice that is sent to the claimant with the amount of benefits requiring repayment, as well as appeal rights and process details.

Why did I receive a Determination of Overpayment for my Unemployment Insurance Benefits?

An unemployment insurance overpayment is created when a claimant receives more benefits than the claimant is lawfully entitled to receive. A.R.S. § 23-787(A), A.A.C. R6-3-1301(4).  When a claim is filed for benefits, by the Department of Economic Security Unemployment Insurance Administration (Department) and has questions about the claim, it will conduct a fact-finding interview through an assigned Deputy to obtain information from the claimant and/or employer to determine eligibility. Based on the facts of the case and application of the state and federal laws, rules, and regulations, if benefits have been paid and the claimant is later found not eligible, the Deputy issues a Determination of Deputy on the facts surrounding the existence of an overpayment and the cause such as fraud, non-fraud, or administrative.  This decision will result in a subsequent Determination of Overpayment.

The Determination of Overpayment includes very important information regarding this determination, including your rights as a claimant, so please make sure to read the entire notice. If you have additional questions or concerns, please contact the Benefit Payment Control unit at 602) 364-4300.

Why did I receive a Determination of Overpayment of my Pandemic Unemployment Assistance (PUA) benefits?

Under the federal PUA program, those filing for unemployment benefits could verify eligibility themselves using key documents needed to make a timely decision. This included proof of employment prior to filing for unemployment benefits. If DES cannot determine with certainty that you had employment that was directly affected by the COVID-19 pandemic or that your earned income supported an increased benefit amount, then your PUA claim could be denied or your weekly benefit amount reduced, leading to the overpayment notification you received.

My Determination of Overpayment says that I was ineligible for benefits. What if I believe that I was eligible for benefits?

If you believe you were eligible for benefits, you may file an untimely appeal of your original Determination of Deputy. Appeals may be submitted online, by phone, fax or mail. 

Online
To submit an appeal online, log in to the Electronic Appeals Submission webpage. Please leave the initial Social Security number and PIN fields blank. You will need to provide your Social Security number and an explanation of why you believe this determination is incorrect later in the process.

By Telephone
To request an appeal by phone, call the UI Call Center at (877) 600-2722 to speak to a DES representative about why you believe your determination is incorrect. 

By Fax or by Mail
To submit an appeal by fax or mail, download and complete one of the following forms from our website:

• Request for Reconsideration/Appeal - English (UIB-0126A)
• Request for Reconsideration/Appeal - Spanish (UIB-0126A-S)

The form must include your name and Social Security number on every page, be signed by you or your authorized representative, and include the date of the Determination of Overpayment.

To send by fax, please send the completed Request for Reconsideration/Appeal form and a copy of your Determination of Overpayment to (888) 417-3639 (toll-free) or (602) 362-5391 (Phoenix).

To send by mail, please mail the completed Request for Reconsideration/Appeal form and a copy of your Determination of Overpayment to the following address: 

Arizona Department Of Economic Security 
Unemployment Insurance Program
P.O. Box 29225, Mail Drop 5895
Phoenix, AZ 85038

How do I repay my overpayment?

Repayment of your Unemployment benefit overpayment can be made through the DES Office of Accounts Receivable and Collections (OARC). Please note that it is important that you wait  21 days from the date of your Determination of Overpayment before contacting OARC. 

Payments can be made online, by phone or by mail.

Online
Payments can be made through the DES Online Payment System.
Items you will need to pay online:
A valid credit card (Visa, MasterCard, Discover, or American Express)
Your DES Account Number (the ten-digit number shown on your monthly billing statement)

Phone
To make a payment by phone, please call (844) 722-6247 or (602) 252-0024 and select option #1.

Mail
To pay by mail, make the check or money order payable to DES and mail it to the address shown at the top of the Determination of Overpayment that you received. To ensure you receive the proper credit for your payment, please include your Claimant Identification number located at the top of the Determination of Overpayment and your current mailing address.

Can I set up a payment plan?

Yes, If you wish to make payment arrangements, please contact the DES Office of Accounts Receivable and Collections (OARC) by phone at (602) 252-0024 or toll-free at (800) 
236-1475. Please wait 21 days from the date of your determination before contacting OARC.

Can I request a waiver? If so, how?

Even though you are liable to repay the overpayment, you may request a waiver of repayment or reduction of all or part of an administrative overpayment. If your request is approved, DES will waive all or a portion of your overpayment, and you will not be required to repay the department.  To be considered for a waiver, you must have a “not at fault” administrative overpayment classification (see classification descriptions below) and are able to show that it would be against equity and good conscience to hold you responsible for paying back the overpayment.

You would not be considered eligible for a waiver if you have an overpayment with a “Fraud” or “Non-fraud” classification.  If your waiver request is denied you will receive a notice from the department and will have an opportunity to request an appeal. See how to file an appeal below.

A waiver request may be filed:

Online

Complete and submit this secure Overpayment Request digital form.

By Email

Complete this Request for Overpayment Waiver - English or Request for Overpayment Waiver - Spanish and return it by email to the DES, Benefit Payment Control Unit (BPC).

By Mail

Complete this Request for Overpayment Waiver form or Request for Overpayment Waiver - Spanish and send it to DES by mail to:

Benefit Payment Control Unit
PO Box 6123 Mail Drop 58N1
Phoenix, AZ 85005-6123

By Fax

Complete this Request for Overpayment Waiver form or Request for Overpayment Waiver - Spanish and fax it to DES at:

Phoenix: (602) 612-8705 or (888) 305-1348
Tucson: (520) 770-3357 or (520) 770-3358

By Phone

Calling Benefit Payment Control at 602-364-4300

A request for a waiver must contain your Claimant ID located at the top of your Determination of Overpayment, the reason you feel you should not or cannot repay the overpayment, and your signature. Please provide your correct mailing address and telephone number so we may contact you promptly if additional information is needed.

Upon receipt of a waiver request, DES will send a Confidential Financial Statement form (form UB092A), which can be found on our Unemployment Insurance Benefits website under "Forms and Pamphlets.”  When you submit the completed financial statement, DES will determine whether the overpayment can be waived. If the waiver request is granted, you will be notified in writing. If the waiver request is denied, a written Determination of Denial will be issued. You may appeal this denial (see the “Appeal Rights” section on our website). If your circumstances change, you may submit a new request for a waiver, and the process will begin again.

How do I appeal a Determination of Overpayment?

You have 15 calendar days after the mailing date shown at the top of the Determination of Overpayment to file an appeal. Overpayment appeals may be submitted online, by phone, fax or mail. 

Online
To submit an appeal online, log in to the Electronic Appeals Submission webpage. Please leave the initial Social Security number and PIN fields blank. You will provide your Social Security number and an explanation of why you believe this determination is incorrect later in the process.

By Telephone
To request an appeal by phone, call the UI Call Center at (877) 600-2722 to speak to a DES representative about why you believe your determination is incorrect. You may also contact the Appeals Office at Toll-Free: 1 (877) 528-3330 to request an appeal.

By Fax or by Mail
To submit an appeal by fax or mail, download and complete one of the following forms from our website:

• Request for Reconsideration/Appeal - English (UIB-0126A)
• Request for Reconsideration/Appeal - Spanish (UIB-0126A-S)

The form must include your name and Social Security number on every page, be signed by you or your

authorized representative, and include the date of the Determination of Overpayment.

To send by fax, please send the completed Request for Reconsideration/Appeal form and a copy of your Determination of Overpayment to (888) 417-3639 (toll-free) or (602) 362-5391 (Phoenix).

To send by mail, please mail the completed Request for Reconsideration/Appeal form and a copy of your Determination of Overpayment to the following address: 

Arizona Department Of Economic Security 
Unemployment Insurance Program
P.O. Box 29225, Mail Drop 5895
Phoenix, AZ 85038

What does the classification of the UI overpayment mean?

UI overpayments are classified in three ways: 

• Administrative: An administrative overpayment means an overpayment that occurred without fault on the claimant's part.
• Non-fraud: A non-fraud overpayment means an overpayment occurred because the claimant unintentionally gave incorrect or incomplete information.
• Fraud: A fraud overpayment occurred because a claimant knowingly misrepresented or concealed material facts to obtain benefits to which the claimant was not lawfully entitled.

I’m unable to read or understand the determination and letters I’ve received. Can I speak to someone about my letters?

Yes, if you need assistance with reading or understanding your determination or any notices related to your claim, please call the Benefit Payment Control Unit at (602) 364-4300.

Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, DES does not discriminate on the basis of race, color, national origin, sex, age, or disability. Persons that require a reasonable accommodation based on language or disability should contact the DES Office of Equal Opportunity. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation.

I don't speak English. Are there Spanish speakers available to talk to me about the letters I've received?

Yes, you have the option to view content on our web page in Spanish by selecting Espanol in the upper right-hand corner. Once it is selected, all content will be translated into Spanish. Our UI call center also offers both English and Spanish options. If the caller selects Spanish, the call will be directed to a Spanish-speaking agent.

What happens if I’m unable to respond within the outlined deadline?

You have 15 days from the determination date to file a timely appeal. Appeals filed late will be allowed in cases of DES error, misinformation, or failure by the post office to deliver the determination. Do not wait to appeal until you have proof to support your case; you will have enough time to gather evidence after filing your appeal.

What if I was approved for a payment plan but still cannot afford to pay back the overpayment?

Unless the overpayment is waived by the Department (see information on waivers), you are still required to pay back the debt. Future UI benefits may be used to repay the overpayment. 

Additionally: 

• If you have any type of fraud or non-fraud regular UI overpayment, the unpaid overpayment balance will accrue at a 10% interest rate annually beginning with the month following when your overpayment was established.
• If you have an administrative regular UI overpayment, the unpaid overpayment balance will accrue at a 10% interest rate annually beginning six (6) months following the month of when the overpayment was established. 
• Pandemic Unemployment Assistance (PUA) overpayments do not accrue interest, however, your unpaid balance will remain a debt that you owe back to the Department. 

If you cannot pay the department back, even with a repayment plan, you are still responsible for the debt. This means you may be subject to benefit offsets, wage garnishment, and tax intercepts. Waivers or voluntary/involuntary payments are the available options.

Will I be prosecuted if I’ve received a determination for a fraud overpayment?

You have the right to appeal your overpayment amount and the fraud classification. 

The DES Office of Inspector General may conduct an investigation if an overpayment amount classified as fraud is over a certain threshold. Based on the results of the investigation, the claim may be referred to the Attorney General's Office for criminal and civil prosecution.

Am I entitled to legal counsel? If so, how do I obtain counsel, and what are my rights?

Yes, you have the right to appeal a determination issued by DES and have the right to have an attorney, paralegal, or other person represent you at your hearing. Your representative can ask witnesses questions, make legal objections to documents and witnesses, and give a closing statement on your behalf. If you choose to pay for legal counsel, they must be a licensed Arizona attorney or supervised by a licensed Arizona attorney. DES does not provide legal representation. 

Will my Internal Revenue Service tax returns be garnished to pay back my overpayment?

Your state income tax refund or state lottery winnings may be intercepted by DES to repay an overpayment, including interest and penalty. if applicable.  Also, if the overpayment is the result of fraud or a failure to report wages, your federal income tax refund may be intercepted to repay your remaining debt. (Per 26 U.S.C 6402(f) and Title 31 CFR 285.8.)

Will my wages be garnished to pay back my overpayment?

Your wages may be garnished by DES to repay an overpayment, including interest and penalty. if applicable.  Also, if the overpayment is the result of fraud or a failure to report wages, your federal income tax refund may be intercepted to repay your remaining debt. (Per 26 U.S.C 6402(f) and Title 31 CFR 285.8.)

What does it mean if I’ve received a Determination of Overpayment that says "You do not need to repay these benefits because these payments were issued incorrectly through no fault of your own, and repayment would be contrary to equity and good conscience. A waiver has been considered and approved?”

The department has determined that this overpayment is without fault on your part or was a result of DES error and therefore, a waiver was considered and approved by the department. This means you will not be responsible for paying the overpayment balance shown on the Determination of Overpayment.

The Determination of Overpayment includes very important information regarding this determination, including your rights as a claimant, so please make sure to read the entire notice. If you have additional questions or concerns, please contact the Benefit Payment Control Unit at (602) 364-4300.

What if I don't want a waiver of my overpayment?

A waiver of overpayment means you do not have to pay back what you owe the Department. If you do not want the overpayment waived, please contact the Benefit Payment Control Unit at 602-364-4300 within fifteen calendar days from the date on the determination/notice and the Department will reconsider the waiver. Please note: a reconsideration of the waiver could mean you will be responsible for paying back the overpayment in full including any interest and fees.

Where can I get help with specific questions about my overpayment amount and/or the classification of my overpayment?

• For questions about the overpayment amount, please contact the DES Benefit Payment Control Unit at (602) 364-4300.
• Questions regarding the overpayment classification and/or the original disqualifying determination may be directed to the UI Call Center at:
  
  • Toll-Free: 1 (877) 600-2722
  • Phoenix: (602) 364-2722
  • Tucson: (520) 791-2722
  • Telecommunications Relay Service for the Deaf/Hard of Hearing: 711 Toll-Free.

Where can I learn more about UI Overpayments?

Additional information about Unemployment Overpayments can be found on our Arizona Unemployment Insurance Overpayment Policy web page.