How to Stop Unemployment Benefits in Illinois

Unemployment insurance benefits, administered by the Illinois Department of Employment Security (IDES), offer temporary financial support to individuals out of work through no fault of their own. Claimants may discontinue benefits for reasons like new employment, no longer meeting eligibility, or moving out of state. Understanding proper procedures helps avoid complications.

Methods for Ending Benefits

The most straightforward method for discontinuing unemployment benefits involves ceasing weekly certifications. Claimants are required to certify eligibility every two weeks; if submissions stop, payments automatically cease. This signals to IDES that the claimant is no longer seeking or eligible for benefits.

Reporting new employment is another step. Individuals must notify IDES as soon as they begin working, whether full-time or part-time, as this affects benefit eligibility. IDES uses state and national new hire tracking systems, making timely reporting important to prevent overpayments. Report gross wages in the week they are earned, not when paid, to maintain compliance.

In some situations, direct contact with IDES may be necessary to resolve specific account issues or confirm that benefits have stopped. Claimants can reach IDES Claimant Services by phone at (800) 244-5631 for assistance. While online portals facilitate many interactions, a direct conversation can clarify complex situations or ensure proper claim closure.

Managing Benefit Overpayments

An unemployment overpayment occurs when a claimant receives benefits for which they were later found ineligible. This can happen due to various reasons, including misreporting income, failing to disclose a return to work, or an employer successfully appealing a benefit decision. Upon identifying an overpayment, IDES issues a “Notice of Reconsideration and Recoupment Decision” to the claimant, detailing the amount owed and the reason for the overpayment.

Individuals facing an overpayment have several options for repayment. They can make a voluntary repayment via check, money order, or credit card. If a lump-sum payment is not feasible, claimants may arrange a monthly installment plan by contacting the IDES Benefit Overpayment Collection unit at (800) 245-9762. Failure to address an overpayment can result in IDES recouping the funds through deductions from future unemployment benefits, potentially up to 25% for non-fraudulent overpayments or 100% for fraud-related cases.

Unaddressed overpayments can also lead to recovery from other state-issued funds, such as tax refunds or unclaimed property held by the State of Illinois Comptroller. For non-fraudulent overpayments, IDES has a five-year period to collect the debt, while fraudulent overpayments have no collection deadline. Deliberate misrepresentation to obtain benefits can result in penalties, including extensive periods of benefit ineligibility, additional fines, and even criminal prosecution.