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Unemployment Insurance Handbook for Employers (UCB-201-P)
Section 3 - Appeals
Tax cases involve an employer’s tax liability or individual’s responsibility. For example, these appeals involve the payroll and employees that must be included in your quarterly contribution and wage reports. The department is a party to these proceedings.
The department will mail the interested parties a determination. If you disagree with the determination, you have the right to appeal by making a written request for a hearing.
An appeal must be in writing. To appeal, you must write to the department stating that you are appealing the determination. Attach a copy of the determination. Indicate any special needs such as an interpreter or other accommodations needed due to disability.
Mail appeal to:
Appellate Section
Unemployment Insurance Division
P.O. Box 7942
Madison, WI 53707
Fax: (608) 267-1400
Email: taxnet@dwd.wisconsin.gov
The business appealing the determination is called the appellant. The department is called the respondent.
The appeal must be postmarked or received within 21 days of the date on which the determination was issued. The deadline is printed on the determination.
An appeal that is received or postmarked after the deadline specified on the determination is considered a late appeal. If an appeal tribunal (an attorney, employed by the state), determines that the appellant’s reasons for filing late, when construed most favorably to the appellant, do not constitute a reason beyond the appellant’s control, the appeal tribunal may dismiss the appeal without a hearing and issue a decision accordingly. The determination will remain the final disposition of the case.
If the appeal tribunal does not dismiss the appeal, the hearing office may schedule a hearing to take testimony about why the appeal was late. The appeal tribunal will determine if the appeal was late for a reason beyond the appellant's control. Work or personal obligations, being out of town, or misreading or misunderstanding the determination generally are not considered to be reasons beyond an appellant's control and the appeal tribunal will dismiss the appeal. The determination will remain the final disposition of the case.
If the appellant proves that the reason for the late appeal was beyond their control, the appeal tribunal may proceed to the merits of the case or order that a later hearing be scheduled on the merits of the case.
The appellant may withdraw the appeal at any time before an appeal tribunal decision is issued on the merits. A withdrawal may be by telephone or in writing to the UI Bureau of Legal Affairs or, if the Hearing Notice has been sent, to the hearing office or the department attorney listed on the Hearing Notice.
If an appeal is withdrawn, no hearing will be held unless another business is involved in the matter, or the other party has also filed an appeal, and that party has not withdrawn its appeal. In that case, the issue appealed by that other party will remain the subject of a hearing and an appeal tribunal decision. If all appeals are withdrawn, the determination will remain in effect and become final without further appeal rights.
Do not wait until the hearing notice is issued to notify the hearing office of scheduling conflicts. Also, keep in mind that parties are expected to make the necessary arrangements to attend the hearing, including taking time off from work or school.
Once the hearing has been scheduled, postponements are granted only for exceptional circumstances. A postponement must be requested as soon as the need for the postponement becomes known. Exceptional circumstances do NOT include the retention of an attorney, accountant or other representative immediately prior to the scheduled hearing date.
All hearings are scheduled by the UI Hearing Office (see Appendix A).
The hearing office mails parties a Hearing Notice at least 6 days in advance of the scheduled hearing. This notice contains important information you will need to know about the scheduled hearing, including:
To see sample hearing notices, see Appendix B.
Please read both sides of the hearing notice carefully. Make sure that you understand the specified issues and prepare your case with the issues in mind.
A telephone hearing is one in which one or more parties appear by telephone.
Most tax hearings are held by telephone unless the case is complex or there are many exhibits involved.
For telephone hearings, the appeal tribunal will call the participants at the scheduled time. Telephone participants must provide a correct phone number in advance of the scheduled hearing. The appeal tribunal may conduct the hearing without a party or dismiss an appeal by a party who fails to provide a phone number or is unavailable when called.
Other considerations:
The hearing office may send copies of relevant documents in the hearing file to the parties before scheduling the phone hearing. If you want to submit other evidence, send it to the hearing office and to the other hearing participants in time for everyone to receive copies before the hearing. The appeal tribunal may refuse to consider evidence that you did not send to all participants before the hearing.
All appeal levels above the hearing level use the record from the hearing (testimony and documents admitted) to make their decisions. As a result, it is important to bring and present all relevant information at the hearing. Because you may get only a few days’ notice that your hearing has been scheduled, it is very important to begin preparing the case right away.
If you have questions about the issues before the hearing, contact the hearing office listed on the hearing notice.
A party may choose to have an attorney or other representative assist at the hearing. If a party plans to have an attorney or representative at the hearing, the party must notify the hearing office as soon as possible of the name, address, and telephone number of the attorney or other representative. Include dates that the attorney or representative is unavailable for a hearing.
Before the hearing, it is helpful to prepare notes of the facts involved in the case for reference during the hearing. Because notes are used only to refresh the memory of the note taker, individuals should not expect to read aloud from them as testimony, nor is it likely that any of these hearing preparation notes will be marked as exhibits by the appeal tribunal. Each party should also write down questions for the other party and important points he or she wishes to make to the appeal tribunal.
A party may request their UI Division file be mailed to them. Please call the UI Hearing Office at (608) 266-8010 to request a copy.
Witnesses should consist of individuals who have actual personal knowledge of and were present to see and hear the events or facts to which they are testifying. An affidavit or written statement (even if notarized) cannot substitute for the personal appearance of a witness. Such a document is hearsay. The witness must appear for the hearing, testify under oath, and answer questions from the appeal tribunal and the other party. Witnesses may include department auditors or other UI Division staff.
The appeal tribunal cannot decide an issue solely on hearsay evidence, that is, evidence not within a witness’s own personal knowledge.
Example: If you want to present evidence that a worker you believe to be an independent contractor has applied for a federal employer identification number (FEIN), you need the worker who filed the application or an eyewitness to testify. Both the worker who filed the application and the eyewitness have direct, firsthand knowledge of what happened (“I took the application to the IRS office,” and “I went with Joe to the IRS office and saw him give them the application.” Either one can provide direct testimony that the IRS received the FEIN application. An example of hearsay or secondhand knowledge would be if a witness testified that "Joe told me that he filed the application.”).
Example: If your case involves the question of whether six workers are “employees,” bring witnesses who have firsthand knowledge about your business relationship with each worker or the business setup of each worker. It is not enough to bring one of the workers and then testify that the rest of the workers are in the same situation.
The appeal tribunal will limit or exclude repetitious testimony. If several people witnessed a particular incident, you do not have to bring them all. Choose one or two with the best information. However, be sure to bring sufficient witnesses to testify about each important part of your case.
The appeal tribunal will not permit testimony from a witness that is not relevant or material to the issues involved in the case. Relevant evidence is evidence that tends to make any important fact more probable than without the evidence.
If a witness seems reluctant to appear at the hearing voluntarily or if you wish to obtain specified documents, you may ask the hearing office to prepare a subpoena form for you. You must contact the hearing office to discuss your subpoena request. An attorney representing you may also issue a subpoena. A subpoena requires the witness to appear at the hearing or requires presentation of the requested documents at the hearing. You are responsible for serving the subpoena before the hearing and for providing the required witness fee and mileage payment to the witness. The hearing office will provide further information about serving the subpoena when giving you the form.
A party may wish to introduce documents or other materials such as contracts or financial records, photographs, video or audio tapes, charts, objects, sample products, etc., to support a case. However, the appeal tribunal may refuse to accept irrelevant evidence, that is, evidence that does not make an important fact more probable than without the evidence.
Photocopies may be submitted, but the original documents should be brought to the hearing to confirm the authenticity of the photocopies. Generally, the person responsible for creating or keeping the records should be present at the hearing to identify, authenticate, and testify about them.
If a video or audio recording is important to prove your case, you must bring it to the hearing in a .mp4 (MP4) format and submit the recordings as part of the record while the appeal is pending (after which the recordings may be returned to you). Notify the hearing office before to the hearing that you plan to play a video or audio recording at the hearing, so that additional time for the hearing may be provided.
The LIRC website, https://lirc.wisconsin.gov/, contains a digest, by topic, of recent LIRC decisions and court decisions. These decisions can be quite helpful, but keep in mind that each case will be decided on its own unique set of facts.
Under very limited circumstances, the department may settle a pending case or compromise on the amount your business (or you individually) owe in taxes (or reimbursements, if you are a reimbursable employer), interest, penalties, and costs. Administrative rule DWD 113 discusses such agreements.
A copy of this administrative rule is on the Legislature’s web page, http://docs.legis.wisconsin.gov/code/admin_code/dwd/100_150/113 .
The appeal tribunal may schedule prehearing conferences pursuant to Wis. Admin. Code DWD §140.07. However, such conferences are scheduled in only the most complex cases. Following the conference, the appeal tribunal will issue an order about such matters as stipulations of fact (both sides agreeing that certain facts are true), limitations on the number of witnesses, stipulations about evidentiary issues, and any other matters that might assist in the disposition of the appeal. A copy of this administrative rule is on the Legislature’s web page, http://docs.legis.wisconsin.gov/code/admin_code/dwd/100_150/140.
Having a hearing is like “starting from scratch,” as if the determination was never made. Parties present their cases before an appeal tribunal. The appeal tribunal conducts the hearing and makes sure that both you and the department have the opportunity to present evidence and give testimony. The appeal tribunal is responsible for controlling the hearing, making sure that the rules of evidence are followed, and protecting the due process rights of the parties.
The department will be represented by an attorney. However, the department's attorney does not schedule the hearing, grant postponements, or other changes once the hearing has been scheduled.
Although the hearing is not a court trial, it is a formal proceeding. Hearings are open to the public, though it is very unusual for a person unrelated to your case to attend. To obtain a copy of the digital recording of your hearing, please call (608) 266-3174. Be sure you let the person you contact know that you are interested in a tax hearing.
For in-person hearings, the hearing locations throughout the state are accessible to persons with physical disabilities. If certain accommodations are necessary to meet your physical needs, you should contact the hearing office immediately so that the appropriate arrangements can be made.
If you need an interpreter to properly participate in the hearing or present your case, you should immediately contact the hearing office. Interpreters for numerous languages are available, but the hearing office requires advance notice and will provide additional time for the hearing.
Persons who are deaf, hard of hearing, or speech-impaired may dial 7-1-1 for Wisconsin Relay Service.
In tax cases it is very important for you attend the hearing. These cases require detailed knowledge about your business that probably only you can provide.
You must report in person if you are scheduled to appear in person. If you are scheduled to appear by telephone, you must be available at the telephone number you provide to the hearing office. If you have been scheduled to appear by telephone but decide to appear in person, make sure that you notify the hearing office in advance of the hearing. Follow the instructions on your hearing notice.
A record is made of the hearing by digital recording. As such, it is important to speak loudly and clearly, not to rustle papers, and not to interrupt, argue or talk at the same time as someone else.
While the appeal tribunal will follow administrative procedural rules on burden of proof and cross-examination, and will limit the use of hearsay evidence, statutory and common law rules of evidence are not controlling.
The appeal tribunal will introduce himself or herself, identify the persons in the hearing room, explain the procedures, summarize the determination issued by the department, define the issues involved in the case, and ask both parties for brief statements about their contentions. The brief statement is not intended to include all the details of your case. Rather, it should provide a quick description of what you are claiming. An example would be: “I believe that the workers are independent contractors and not employees.”
The appeal tribunal will determine the order in which the parties and any witnesses testify, swear them in, and question them. The appeal tribunal is responsible for getting all the information necessary to understand the facts of your case and to obtain a sufficient record of testimony and other evidence presented in order to make a decision.
The appeal tribunal may exclude witnesses (that is, order witnesses to remain outside the hearing room) so that the witnesses are not influenced by the testimony of others. Similarly, the appeal tribunal may limit or exclude the testimony of witnesses if the testimony is repetitive, irrelevant, immaterial, or based solely on hearsay.
In addition to presenting their own testimony, a party will be given a chance to ask questions of the other party and their witnesses (called cross-examination). Cross-examining a witness involves asking questions about that person's testimony or asking them to provide additional information important to your case. It may be helpful to bring a pen and paper to take notes during the testimony.
Cross examination does not involve providing your own testimony (you will get your own chance to do that). For example, a person testifies that you paid him $500 on March 21. You can ask questions about that, such as: “Did I pay you by check?”, but you cannot interrupt or argue with him or rebut what he said, such as, “But part of that was repaying a loan!”
You (or your representative) may object to certain questions or to the admission of certain evidence. Before ruling on the objection, the appeal tribunal may ask the other party to respond to the objection.
After both parties have had the chance to present their cases and question the other party’s witnesses, the appeal tribunal will end the hearing.
The party with the burden of proof, that is, the party who has the duty of affirmatively proving its case, depends on the issue or issues involved at the hearing.
For example, there is a presumption that a worker is an employee, not an independent contractor, unless the business proves to the department that the worker is not an employee. Therefore, it is the employer's burden to prove that the worker is not an employee.
Most cases involve proof by a preponderance of the evidence. This means that whoever has the burden of proof must show that it is more probable than not that the claim that the party is making is true. For example, if you are trying to prove that certain wages should not be counted as wages for tax purposes because they were paid for agricultural labor, you must convince the appeal tribunal that it is more probable than not that the work performed was agricultural labor.
If the appellant (the employer or business) does not attend the hearing, then the appeal is dismissed. The determination remains in effect and becomes final (unless good cause for failing to appear is shown). The appeal tribunal will wait 10 minutes before dismissing the appeal.
If the respondent, the department, does not attend the hearing, it gives up the chance to present evidence and testimony at the hearing (unless good cause for failing to appear is shown). The appeal tribunal will wait 10 minutes before proceeding with the hearing without the respondent.
If a party fails to appear for a hearing but believes there was good cause for failing to appear, they may provide a written explanation of the reasons for not appearing. A party may submit the written explanation to the hearing office at any time before a decision is issued or within the 21-day appeal period after a decision is mailed. If, after review, the appeal tribunal decides there was no good cause for failing to appear, the request for hearing will be denied. If the appeal tribunal decides there was good cause for failing to appear, a hearing will be scheduled on the merits of the case.
A person’s illness, an accident, or unexpected circumstances that would prevent a person from being able to attend a hearing may be good cause. Forgetting about the hearing, writing the wrong date on your calendar, getting lost, or getting stuck in traffic generally are not considered to be good cause.
After the hearing, the appeal tribunal will review the testimony and the exhibits received at the hearing, decide how the unemployment insurance law applies to the facts, and issue a written decision. The Appeal Tribunal Decision or ATD, will be based solely on the evidence presented at the hearing. The appeal tribunal’s decision can change the ruling made in the determination.
A copy of the appeal tribunal's decision will be mailed to you or your representative. If you haven’t received a decision within 60 days, please contact the hearing office. This is important because, if the mail was misdirected, you could miss the deadline to appeal the appeal tribunal’s decision.
REMINDER: A decision in a tax case does not decide a claimant’s benefit eligibility.
Example: A tax decision is issued stating that a claimant was an employee and not an independent contractor. That decision will not automatically decide that issue for the claimant’s benefit eligibility. The issue involved in the benefit case is not whether you are liable for UI taxes; it is whether the claimant is eligible for benefits.
The decision of the appeal tribunal may be appealed to the Labor and Industry Review Commission (LIRC), and LIRC's decision may be appealed to the courts. For detailed information on these further appeals, see Parts 2 and 3.
Updated: August 19, 2024
DWD Contact Information
201 E. Washington Ave
P.O. Box 7946
Madison, WI 53707
(608) 266-3131
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