(ii) If an overpayment is established under this paragraph, an employer
is assigned charges for the overpayment under section 302(a)(2) of
this act and the determination assigning charges to the employer is
final, an amount equal to the amount charged to the employer shall
be applied as a credit toward the person's overpayment. The
provisions of this subparagraph shall not apply to an overpayment
to which subparagraph (iii) applies.
(iii) In the absence of misrepresentation or non-disclosure of a
material fact, no recoupment shall be had if such overpayment
is created by reason of:
(A) a subsequent reversal of two decisions of eligibility
under the provisions of section five hundred one (e)
of this act;
(B) the subsequent receipt of holiday pay, vacation pay or
the like of which the person had no knowledge; or
(C) a subsequent determination that the person's base year
wages were not earned in employment as defined in this act.