There’s plenty of information out there on how to start receiving unemployment benefits. But having once received them, how do you stop them again?
With the plummeting unemployment rate and the booming economy, hopefully it’s because you got a new job. Or perhaps you’re no longer eligible for other reasons, such as not being able to look for a new job, or other lifestyle changes, such as deciding to retire instead.
Here are the steps involved in how to cancel unemployment benefits.
Canceling Unemployment Insurance Claims in 2022
While unemployment is funded by the federal government, each state manages its own unemployment insurance (UI) program. Consequently, each state has its own way of signing up – and cancelling – unemployment benefits.
For example, in many states, all you need to do is stop filling out your weekly or biweekly reports, and the state will cancel your claim. (That’s important to remember, too, if you want to keep receiving your unemployment benefits: You need to file your weekly or biweekly report with the state.)
“If you go back to work or are no longer in need of UI benefits for some period of time, simply stop certifying,” notes Unemployment Insurance Benefits, the unemployment insurance manual from the Employment Development Department (EDD) in the state of California. In fact, the state specifically asks that recipients not contact the office when they get a new job.
Alternatively, note in your weekly or biweekly report the number of hours you worked in your new job – when you worked, not when you were paid – and let the state unemployment office take it from there. Some states may even have a field on their form, or on their website, to let the state know that you have taken a new job and no longer need unemployment benefits.
“As soon as you begin working, be sure to notify IDES if you plan to continue claiming UI benefits,” notes the Illinois unemployment insurance website. “Do not wait until you receive your first paycheck to report your return to work. IDES uses state and national resources to track new hires, so it is in your best interest to report your return to work immediately to avoid the consequences of an overpayment.”
Remember that if you get a part-time job, or work just part of a week, you don’t necessarily need to cancel or stop your unemployment insurance claim. In many states, you can continue receiving a partial unemployment benefit. You need to tell the office how much you earned in the previous week when you fill out your weekly or biweekly report, and the state will calculate the amount for which you’re eligible.
Stopping an Unemployment Claim or Correcting an Error
Maybe you’re lucky enough to get a job right away – after you filed for unemployment, but before you started receiving unemployment benefits. Or maybe you want to stop a claim because it turns out you weren’t eligible for unemployment, or because you made an error. You may need to contact the state unemployment insurance office to do so.
“You may only cancel your UI claim if your claim has not ended, a Notice of Determination has not been mailed, no benefits have been paid, and no overpayment has been established on the claim,” warns the California unemployment insurance manual. “If your claim is canceled, you can file a new UI claim with a later date. If you want to cancel your claim, contact the EDD IMMEDIATELY. You cannot cancel a claim after you have collected UI benefits and cannot file a new UI claim until your current claim ends.”
Similarly, in Virginia, “If you wish to cancel your claim and not claim benefits, your cancelation request must be made in writing within 30 days of the date your claim is filed,” notes the state unemployment insurance website. You also can’t have received any benefits.
And in Michigan, “To withdraw your claim, you must submit a request in writing, either on paper or through MiWAM, explaining why you wish to withdraw your claim,” the state website notes. “If you submit your request on paper, please be sure to date and sign your request.”
If you do happen to receive unemployment benefits for which you’re not eligible, don’t cash or deposit the funds. Contact your state unemployment insurance office to find out what to do.
If you made an error in your application or your weekly or biweekly report, but are still eligible for unemployment, check with the state unemployment insurance office before canceling your claim. The office may be able to fix the error without your having to cancel and recertify all over again.
Regaining Canceled Unemployment Benefits
Depending on the state and how long ago you canceled your unemployment benefits, if you want to regain them, you may need to file a new claim and start all over again. But not always, particularly if the period is less than a year.
“The number of weeks you can collect unemployment within that 52-week period will depend on your state,” explains CNBC. “State allowances range from a low of 12 weeks in Florida and North Carolina to a high of 28 weeks in Montana but are most commonly 26 weeks. You don’t have to use your weeks of unemployment consecutively, but generally you do have to use them within a year of when you first qualified for benefits.
“So, for example, let’s say you live in a state that offers 26 weeks of unemployment. You qualify for aid and claim benefits for 13 weeks. Your employer reopens and you’re rehired, so you stop collecting benefits while you’re working full-time. Twenty-six weeks go by. If the business shuts down again after that period, you’ll still have a remaining 13 weeks to collect unemployment before your benefit year expires.”
State websites concur. “You can reopen your claim in the future if benefits are still available and your claim has not ended,” notes the California unemployment manual. “If you stopped receiving benefits and now need to certify again, DO NOT delay reopening your claim. You may reopen your claim through UI OnlineSM, by phone, or by fax. The fastest way to reopen a claim is through UI OnlineSM at www.edd.ca.gov/UI_Online”.
Similarly, in Pennsylvania, you can reopen your claim. “It doesn’t matter if you’re filing with the same employer or a new one, if you’re filing for UC benefits within the 12 months that you opened your initial claim, you will reopen it to file for benefits,” notes the state’s unemployment insurance website. You can do this either online or via phone.
As always, if you’re not sure, contact your state unemployment office website for advice on your specific state, and for contact information if you can’t find what you need on the website.
Involuntarily Canceled Unemployment Claims
What if your unemployment benefits were canceled without your knowledge or wish? If that’s the case, you will probably have received a communication from the state unemployment insurance office telling you that your claim has been canceled, and why. The communication will probably tell you how to appeal the ruling and restart your claim.
In Oregon, for example, missing just one weekly report is enough for the state to stop your unemployment benefits, and you must call the state unemployment insurance office to get benefits restarted or reopened.
In any event, the best course to follow is to contact your state unemployment office and find out. The sooner you act, the more quickly you can find out what the problem is, correct it, and start receiving your unemployment benefits.
Whatever the reason, the point is, once you know you are no longer eligible to receive unemployment benefits, it’s important to cancel them right away. Not only is it the right thing to do but accepting unemployment benefits when you’re not entitled to them is illegal, and you could not only have to pay them back but be fined and jailed as well.
“Any claimant who provides false information or withholds information to receive benefits may be assessed a false statement disqualification penalty that denies them benefits from 2 to 23 weeks,” notes the California unemployment insurance manual. “In addition, if the claimant is assessed an overpayment, a 30 percent monetary penalty will be added to the amount overpaid. The EDD may also pursue criminal charges against any claimant who commits fraud to illegally obtain benefits.”
If you would like to read more about benefits overpayments, click here and then link to: https://solidstateops.net/settle-unemployment-overpayment/
