RALEIGH, N.C. — The state of North Carolina overpaid unemployment insurance benefits during the pandemic to the tune of $613,480,545. That's according to the N.C. Division of Employment Security.
In a breakdown of the overpayments, the division said the state overpaid benefits to 205,216 recipients between April 1, 2020, and Sept. 4, 2021. Of them, it said, 123,084 have yet to pay back the money they owe, which totals $524,561,020.
According to the state, 18,126 recipients were "overpaid due to fraudulent activity."
"Recovery of unemployment overpayments is an ongoing process," a representative from the division wrote. "The majority of overpayments are not fraudulent in nature; overpayments that are considered non-fraudulent include ones with claimant errors and appeal reversals.
The division said it has several tools that can recover overpayments.
"For non-fraud overpayments, such as those relating to claimant errors or those reversed on appeal, the division has methods to offset tax returns and lottery winnings to recover overpayment funds and take 50% of future UI (unemployment insurance) benefits," a representative said.
The division said it also has several ways to recover money dispersed through fraud.
"Fraud overpayments have a 15% penalty applied and a one-year disqualified for unemployment from date of determination as well as garnishment of wages, tax returns, and lottery winnings plus the retention of 100% of future UI benefits to recover overpayments," the representative added.
Overall, North Carolina paid out more than $14.1 billion in pandemic unemployment assistance. The $613 million in overpayments represents approximately 4% of the total pandemic unemployment assistance benefits.
"Nearly 70% of these established overpayments are from the Federal Pandemic Unemployment Compensation (FPUC) program, which provides the extra $600 (later $300) per week," the division representative wrote. "North Carolina has and continues to take proactive steps to identify and prevent fraudulent activity related to unemployment insurance benefits."
Editor's Note: The Youtube video below is not connected to unemployment received during the pandemic.