Scott Walker, Governor
Raymond Allen, Secretary
Department of Workforce Development
201 E. Washington Avenue
P.O. Box 7946
Madison, WI 53707-7946
Telephone: (608) 266-3131
Fax: (608) 266-1784
FOR IMMEDIATE RELEASE
Wednesday, December 07, 2016
CONTACT: DWD Communications, 608-266-2722
On the Web: http://dwd.wisconsin.gov/dwd/news.htm
On Facebook: http://www.facebook.com/WIWorkforce
On Twitter: @WIWorkforce
DWD Worker Classification Efforts Save UI Trust Fund Nearly $1 Million Since 2013
Taxes owed are collected and deposited to UI Trust Fund, leveling playing field for Wisconsin employers who comply with UI law
MADISON – Today, Department of Workforce Development (DWD) Secretary Ray Allen announced that the department's efforts to combat worker misclassification have saved the Unemployment Insurance (UI) Trust Fund $1 million since May 2013. There have been approximately 887 worker classification investigations since May of 2013 which resulted in 257 audits that have been conducted or scheduled. The audits resulted in 2,208 misclassified workers identified and $986K in UI tax, interest and penalties assessed.
"Under Governor Walker, Wisconsin taxpayers can take pride in knowing that their state government is working diligently to improve processes that make programs more effective and efficient," Secretary Allen said. "DWD has made it a priority to combat worker misclassification which has resulted in almost a million dollars of savings for the UI Trust Fund, which benefits Wisconsin employers."
When employers improperly classify workers and avoid paying legally required UI taxes, the balance of Wisconsin's UI Trust Fund is adversely impacted and benefits are improperly denied to workers who are out of work through no fault of their own. DWD's seasoned investigators, including former Wisconsin Department of Justice and Federal Bureau of Investigation agents, work collaboratively across the state's UI operation to conduct worksite investigations, follow-up on tips and determine employer tax liability and associated penalties related to non-compliance.
DWD's ongoing commitment to prevent, detect, and act against fraud and abuse in the UI system has helped the UI Trust Fund move from a $1.3 billion deficit in 2010 to its highest balance since 2003.
Signifying Wisconsin as a national leader, DWD is presenting on the state's efforts to combat worker misclassification at the National Association of State Workforce Agencies' UI Integrity Symposium today in Baltimore, Maryland.
Some of the latest efforts include:
- DWD's recently released videos aimed at educating employers on how to properly classify workers in Wisconsin for Unemployment Insurance (UI) tax purposes. The videos, available on DWD's website and YouTube Channel, highlight DWD's Worker Classification website and represent the state's latest strategies under Governor Scott Walker's leadership to administer an effective and accountable UI program, to fight fraud and abuse and to support a stable UI Trust Fund.
- DWD speaks with professional organizations and routinely sponsors forums such as labor law clinics and webinars to help educate employers on the importance of proper worker classification.
For information on how to properly classify workers in Wisconsin, please visit DWD's UI Worker Classification website.