Washington REFUND NOTIFICATION Refunding Money to L&I to correct your account is a process through which the Washington State Department of Labor & Industries (L&I) reimburses money to employers to correct their accounts. This process is used when employers have overpaid or underpaid taxes, wages, or benefits to workers. There are two types of refunds available: refund of overpayment and refund of underpayment. For a refund of overpayment, L&I will return the money to the employer’s account and the employer can use it to pay outstanding bills or taxes. For a refund of underpayment, L&I will reimburse the employer for the amount that should have been paid to the worker. This process helps employers maintain accurate financial records and prevent costly mistakes.