To ensure that EDD collects unemployment benefit overpayments as efficiently as possible, we recommend EDD adhere to its commitment to begin participating in the Offset Program to collect unemployment benefit overpayments by no later than September 2014.
EDD reported that on September 30, 2014, it sent to the U.S. Treasury a file to offset the federal tax returns of individuals who owe delinquent Unemployment Insurance (UI) compensation debts. This initial offset file contained more than $1.2 billion of UI compensation liabilities. EDD stated that it expected to soon begin receiving successful offset returns from the U.S. Treasury. However, it likely will not collect substantial amounts until February through May 2015 when the U.S. Treasury processes the majority of tax refunds. EDD stated that it continues to send the notices to claimants who meet the overpayment criteria.
EDD reported that in May 2014 it began sending notices to claimants with outstanding overpayments for unemployment benefits received. The notices informed the claimants of EDD's intent to offset their federal payments. It reported in August 2014 that it is still on track to begin collecting unemployment benefit overpayments by offsetting federal tax returns in September 2014.
EDD reported that it is working actively to perform the information technology work necessary to participate in the Offset Program to collect unemployment benefit overpayments beginning in September 2014.