The Division conducts a benefit payment control program to detect and prevent improper payment (overpayment) of unemployment benefits. The primary means of detecting overpayments are cross-matches with new hire data and quarterly wages reported for claimants by employers. When a match is made, the Division sends an Audit and Investigation form to the employer to confirm whether or not benefits were overpaid.

It is very important for an employer to complete and return the Audit and Investigation forms providing wages earned during each week the worker claimed benefits.

Overpayment of benefits can affect an employer's tax rate. Benefits charged to the employer's account as well as the balance of the Unemployment Compensation Trust Fund are factors that can raise an employer's tax rate. Taxes are deposited into the Trust Fund, from which benefits are paid. Claimants are required to pay back overpaid benefits, and payments are deposited back into the Trust Fund.

When the Division determines a claimant for unemployment benefits failed to report earnings, the claimant will be required to repay those benefits. Some overpayments are the result of honest mistakes. However, if the claimant committed fraud in obtaining benefits, he or she can be assessed an additional monetary penalty, as well as possibly having their benefit rights canceled and being arrested, fined and imprisoned.