Fact Sheet 174 - Recoupment

Recoupment is the process the Unemployment Insurance Agency (UIA) uses to recover money that was overpaid on a claim. Money on an outstanding debt is to be repaid through deductions from current UI payments or as part of a repayment schedule.

State law sets the recoupment rate at 50 percent for overpayments in which there was no intentional misrepresentation found and 100 percent for overpayments in which intentional misrepresentation was found (intentional misrepresentation means that the Agency determined that false information was provided to obtain Unemployment Insurance benefits). In March 2020, due to the pandemic, the UIA temporarily reduced the amount of unemployment benefits it would recoup to 15 percent.

Effective November 7, 2021, if you are claiming unemployment benefits, UIA will return to the recoupment rates of 50 percent and 100 percent of benefits payable each week.   

Interest will be charged on the principal amount at a rate of 1 percent per month and is computed daily. Where it’s determined there is no intentional misrepresentation, interest begins to accrue one year from the date the UIA’s decision becomes final. In cases involving intentional misrepresentation, interest begins the date the decision becomes final. Interest will continue to accrue until the principal balance has been paid in full.

For questions about repayment of benefits, contact the UIA Benefit Overpayment Collection Unit at 1-866-500-0017.

Frequently Asked Questions:

Question: What does it mean when the Agency says my benefits are being recouped? 
Answer: Recoupment means the Agency will automatically deduct money from your unemployment benefits to reduce the total amount of the overpayment.

Question: What is an overpayment?
Answer:An overpayment occurs when an individual is found to be ineligible or disqualified for benefits they have already received. Those benefits must be repaid.

Question: If I no longer have an active unemployment insurance claim, do I still have to pay restitution to the Agency?
Answer: Yes, even if you are no longer collecting benefits, the restitution including interest and penalty (if applicable) is still due to the Agency. A repayment plan may be set up according to the repayment schedule.

Question: What is a repayment schedule?
Answer: The repayment schedule as noted on Form UIA 1088 (Monthly Statement) provides a chart for a claimant to follow for the repayment of overpaid unemployment insurance benefits. Based on the original amount of the overpayment, the minimum monthly payment amount is required to keep the collection account in good standing.

Current Repayment Schedule 

Question: If I pay my minimum monthly payment, and/or I am being recouped, will my federal and state income tax refunds still be intercepted?
Answer: If you are making monthly payments and/or being recouped, both state and federal tax refund(s) are subject to being intercepted.

Question: What if I’m in a bankruptcy?
Answer: If you filed for bankruptcy and the automatic bankruptcy stay is in effect, you are not subject to offset. You may contact the Bankruptcy Unit at 1-866-500-0017 Monday through Friday from 8:00 a.m. until 4:30 p.m.

Question: How do I make a payment?
Answer: Submit electronic payments through your MiWAM account at www.Michigan.gov/UIA or detach and use the payment voucher received on your monthly statement (UIA 1088). Make your check or money order payable to State of Michigan. Do not send cash.

Mail payments only to:

State of Michigan
Unemployment Insurance Agency-Restitution
Dept# 771760
P.O. Box 77000
Detroit, Michigan 48277-1760

Question: In addition to recoupment, does the Agency use any other methods to collect the debt?
Answer: Other collection methods include:

• The United States Department of Treasury intercepting up to the full amount of your federal income tax refund for overpayment of unemployment benefits due to fraud or unreported earnings.
• UIA withholding future unemployment compensation benefits to pay the debt.
• Michigan Department of Treasury intercepting the full amount of your state income tax refund to pay the debt.
• Michigan Department of Treasury withholding State Lottery winnings to pay the debt.
• Administrative wage garnishment without obtaining court order.
• UIA filing a civil action in court to recover the debt.