If you’ve been drawing unemployment insurance benefits and have since found employment – congratulations! Finding a job after a stretch of receiving unemployment compensation is a major accomplishment and you should feel proud. Now that you’re once again employed, one important step you’ll need to take is to learn how to stop unemployment benefits. This is a relatively simple, but important, process, and we’ll walk you through everything you need to know to make sure you stay in compliance with your state’s unemployment agency.
How To Stop Unemployment Benefits When You Get a Job
Stopping unemployment benefits once you’ve found a job is an important step. You want to avoid collecting a paycheck and unemployment check at the same time, or you may be accused of committing fraud. By stopping your unemployment benefits, you are making sure the unemployment insurance process stays clear of fraud and you avoid overpayment of unemployment benefits.
You can put a stop to your unemployment benefits in a couple of different ways. First, you can call your state unemployment agency and let them know you’ve found a job, along with the date you’ll start your new work. This is important because your unemployment benefits should stop on your first day of work, not the day you collect your first paycheck.
By contacting your state’s unemployment agency, your records can be updated immediately to make sure your benefits checks no longer are processed.
The second way to stop your unemployment benefits is a bit more passive. In most cases, you are required to submit a weekly or bi-weekly claim for benefits to receive compensation. If you simply stop submitting these weekly or bi-weekly claims, your benefits will stop automatically.
Some states require you to notify the unemployment office if you get a new job. For the best information, make sure to check directly with your state’s UI office to find out their specific expectations once you find employment. Some states do not require official notice and simply close out your unemployment file once a certain amount of time has passed since your last weekly or bi-weekly claim. Others states require that you either call your local unemployment office or submit a notice in writing that you have found employment and will no longer draw unemployment benefits.
When To Stop Unemployment Benefits
Ideally, you should stop your unemployment benefits as soon as possible. Individual states may vary in their expectations, but in most cases, you’re expected to report your new job immediately. Your benefits must stop by the first day of your new job – not on the day you first get paid at your new job. If you forget to report immediately, then contact your state unemployment agency as soon as you remember so that you can avoid an accidental overpayment if possible.
Retirement
If your retirement pension has started arriving, you will have to inform the authorities involved. Trying to receive both payments may land you in trouble. Pension benefits are subject to taxes. If the officials cross-check this with your unemployment benefits, they may deem you over-paid and may even ask you to refund the benefit amount you have received.
It is not a rule in all states. Some states let you collect both unemployment benefits and pension benefits without reducing your benefit amount for U.I. Additionally, if this is your social security retirement pension, the amount will not be reduced. You need not report your social security pension benefits to the authorities at U.I.
What To Do If You Receive an Overpayment
If you receive an overpayment, it’s important to report the overpayment to your state unemployment agency. You are obligated to repay it. It’s not uncommon for workers to forget to stop their unemployment benefits, especially in states with biweekly filing. The most common cause of overpayments is forgetfulness – people simply forget to contact their state agency and inadvertently receive an extra UI payment after starting a new job.
If this happens to you and you receive an extra payment, contact your unemployment agency staff immediately. If your state agency pays you via direct deposit, it may even be able to reverse the transfer with no action on your part. It may be possible to remove funds deposited onto a prepaid debit card or stop payment on a paper check if that’s how you receive your monthly compensation.
When this kind of honest mistake is made, it’s unlikely that you will have to pay any additional penalties or fees if you return the overpayment. But for those caught lying about unemployment benefits, the penalties can be steep. If you don’t report an overpayment and it’s discovered later, you may be responsible for additional fees and penalties. In some cases, failing to report an overpayment can even affect your eligibility for unemployment benefits in the future.
How Do I Reopen My Claim?
Sometimes, a new job doesn’t work out and you need to get back on unemployment. If you’re wondering how to reopen a claim for unemployment benefits, it’s actually fairly simple. If your job was terminated through no fault of your own, you can be eligible to receive unemployment benefits again. This often happens when workers are laid off, furloughed, or working hours are reduced. You can also quit your new job because of unsafe working conditions.
Depending on how much time has passed, you may be able to reopen the claim by simply logging in to your UI account. You may be required to submit a whole new claim. Many times, if you become unemployed again within 52 weeks of stopping your unemployment benefits, you can simply reactivate your account and begin filing your weekly or biweekly benefit claims.
To reactivate an existing account, log into your account, select the option for reopening a claim, and answer questions from the Department of Labor regarding your work circumstances. If you aren’t sure where to start, contact your state’s unemployment agency for guidance.
To find out more, visit the Unemployment Benefits by State page.
I got a new job, but won’t start until next month. Do I still collect unemployment?
Question from Dot
I am a school teacher who was let go from my last job and have been receiving unemployment. I was hired for a new teaching job and will start on August 11 and be paid my first check on Aug. 31.
My question is, am I eligible to continue receiving unemployment until I start my new job?
I live in Florida.
Thank you.
Hi Dot,
Yes, you are eligible until you start work because you are considered unemployed until you do start.
But August 11th is a Wednesday, so you might still receive something for that week depending on the earnings.
Earnings must be reported to unemployment when you file the claim for any week, not when you get paid the earnings.
People often make the mistake of not reporting earnings correctly, much to their regret.