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Idaho Department of Labor explains why some people are asked to pay back unemployment insurance

After receiving unemployment insurance payments earlier this year, some Idahoans say they have been asked to pay the money back.

BOISE, Idaho — Months after receiving unemployment insurance payments from the Idaho Department of Labor (IDL), some Idahoans are now being asked to pay some or all of that money back.

Nearly all those who are being asked to do so have one question: why?

“If someone received benefits that they weren’t entitled to for whatever reason, we ask them to go ahead and pay it back,” IDL's Unemployment Insurance Compliance Bureau Chief Larry Ingram said.

Although there are many reasons why someone could be asked to return unemployment payments, one occurs most often. 

“One of the more common occurrences is when someone returns to work, they fail to report that they returned to work and they fail to report their earnings," Ingram said. "Once we identify that, we definitely ask that individual to pay it back."

Unemployment claims are processed based on information given to IDL when an initial claim is filed. While claims may be approved immediately, a later investigation may show the initial information given was incorrect, either intentionally or by mistake.

“That definitely happens," Ingram said. "If someone was eligible for less than what they were initially paid, we do ask them to pay that back."

For months, Idaho unemployment claims came in at a much higher volume than seen in recent years. There was enormous pressure on IDL to process claims and make payments. 

However, applications were not just given a rubber stamp so people would be appeased with payments.

“We only try to make payments when payments are due. If there is some sort of discrepancy, we will take a look at it," Ingram said. "I’d hate to take money back from someone if the department was at fault, but I can’t say that was policy to just go ahead and shove money out because that certainly wasn’t true."

All unemployment claims are cross-checked before payments are dispersed. However, new information not provided before could be learned by IDL.

“If a person says they earned $1,000 during a month and we talk to the employer and the person really earned $5,000, there is a little discrepancy there," Ingram said. "That person, if they were receiving unemployment during that time, probably received a lot of benefits that they weren’t entitled too."

IDL workers advise Idahoans to be very thorough while filling out initial and weekly unemployment claims by ensuring every detail is correct. Doing so is the best way to avoid being asked to repay benefits.

“All I would say is answer the questions you are asked when you are filling your claim honestly and give consideration into what you are answering,” Ingram said.

Idahoans receiving benefits do not need to continue filing weekly claims once they return to work.

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