CWES Overpayment & Underpayment - Methods of Overpayment Recovery

The method that results in the maximum recovery without interfering with program participation must be used. The following methods may be used to recover an overpayment.

Offsetting

Counties may NOT offset any supportive overpayments against CalWORKs underpayment unless the client agrees or volunteers.

Voluntary Cash Recovery

The individual may choose to pay in full or any portion of an existing overpayment by voluntary cash payment. Payments must be made payable to "Santa Clara County DTAC". The individual may send or bring payments in person to any SSA office. When the individual brings a payment to be applied to an overpayment, the EC follows the following office procedures to ensure payment is forwarded to DTAC:

• Payment can only be by check or money order in any Social Services Agency office.
• Cash payments will only be accepted at 333 W. Julian Street, San Jose, CA 95110.

Refer to the Common Place Handbook Collection Payments.

The individual also has the option of pay online by visiting https://dtac.santaclaracounty.gov/collections/pay-public-assistance-collections or by phone at by calling 1-844-472-9772.

CalWORKs Grant Adjustment

The client is permitted to have supportive services overpayments adjusted from the CalWORKs grant when the individual is receiving CalWORKs, provided:

• The client chooses this method of recovery, AND
• The client agrees with the amount of the CalWORKs grant adjustment.

If the client chooses this method of recovery, follow these steps:

A. The EC:

• Receives the “Welfare-to-Work Repayment Agreement” (WTW 12) from the client or provider
• Enters the Repayment Agreement in CalWIN and indicates that the client wants to do a Grant Adjustment.
• Forwards the WTW 12 to IDM for scanning.

B. The CalWIN:

• Collects the following percentage from the CalWORKs grant until the overpayment is paid in full or revoked by the client.
• For client-caused overpayments, CalWIN collects 10% of the CalWORKs monthly grant, unless the client volunteers to pay a higher amount
• For Administrative overpayments, CalWIN collects 5% of the CalWORKs monthly grant, unless the client volunteers to pay a higher amount.

Note: All CalWORKs overpayments must be collected first prior to collecting any CWES overpayments. For multiple CWES overpayments, follow the order of priority per CalWORKs Handbook Section 51.6.7.

Note: Clients may revoke a repayment agreement incorporating grant adjustment and enter into a new repayment agreement at any time.

Supportive Services Payment Adjustment

If the EC defers the overpayment recovery/collection, supportive services payment adjustment is NOT applied.

If the client does not respond to the overpayment notice within ten (10) calendar days from the date the notice is mailed, or the client does respond but fails or refuses to enter into a repayment agreement, supportive services payment adjustment would apply and the EC must follow these rules:

• When the current payment adjustment is not enough to recover the entire overpayment or no claim is received in a given month, then the remaining amount of the overpayment is applied to succeeding month(s), and the adjustment process is repeated.
• For Administrative overpayments, the EC must collect 5% of the total supportive services payment being issued, unless the individual volunteers to pay a higher percentage.
• For client-caused overpayments, the EC must collect 10% of the total supportive services payment being issued, unless the individual volunteers to pay a higher percentage.

Note: Payment adjustment is not an option for providers.

Child Care Payment Reduction

The child care provider may choose child care payment reduction as an overpayment recovery option.  If the child care provider returns the completed Child Care Provider Overpayment Notice/Consent (SCD 1788) and consents to the child care payment reduction, the EC will deduct the overpayment amount from the next child care payment(s) until the full amount owed is paid. 

Reminder: This only applies when the child care provider has provided written consent for child care payment reduction as a method of recovery, as indicated on the SCD 1788 submitted by the child care provider.

Tax Intercept

County Collections is working with the Franchise Tax Board and Internal Revenue Service to intercept state tax refunds and deduct delinquent welfare overpayments from them. All CalWORKS or Supportive Services overpayments and all fraudulently obtained Food Stamp over-issuances are subject to be collected via tax interception.

Reminder: The intercept process does not apply if the client is still eligible for grant adjustment, allotment reduction, or is making regular payments.