You must complete and return the Application for Overpayment Waiver (DE 1446UI) to be considered for a waiver. A benefit overpayment is when you collect unemployment, disability, or Paid Family Leave (PFL) benefits you are not eligible to receive.Here's what happens when your state overpays your UI benefits and six steps you can take if you find yourself facing this problem. If you get a STATE income tax refund, it may be intercepted to cover your debt. Most employers pay both a Federal and state unemployment tax. Use this form for your annual. What should I do if I get a Notice of Overpayment?