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In an effort to combat the misclassification of workers in Wisconsin, the state has netted $1.4 million in unpaid unemployment insurance taxes, interest and associated penalties, the state Department of Workforce Development said Thursday.
Wisconsin’s efforts to reduce worker misclassification is part of a multipronged, anti-fraud initiative designed to ensure employers comply with requirements to classify workers correctly as employees or independent contractors under unemployment, workers compensation and equal rights law, the department said in a statement.
“Although strong penalties exist for employers that intentionally misclassify workers as part of their business practices, we aim to use those measures only for the most egregious cases, choosing first to educate employers and encourage them to voluntary comply with UI tax law,” Ray Allen, DWD secretary, said in the statement.
The National Council on Compensation Insurance Inc. has proposed two revisions to its basic manual that change some classifications because they provide insufficient data to use for ratemaking and loss costs in Texas.