For now I'm going to fill out the waiver of over payments letter and send it back but I'm still not sure what to do and what will happen? An employee's overpayment debt may be waived in whole or in part.Overpayment: When a state agency finds it has paid a worker UI benefits the worker was not entitled to. For overpayments that occurred in a previous calendar year, a corrected W-2 (W-2C) may be required. Collection of Benefit Overpayments. Unemployment compensation is a state program to help workers who are unemployed through no fault of their own.