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WI Misclassification Inquiry

This page provides a clear, factual overview of what a WI Misclassification Inquiry involves, why organizations receive it, how risk is evaluated, and the typical steps required to resolve it. These insights are based on patterns seen across Rideshare and delivery platforms, on-demand home services, marketplaces, and app-based field service networks. and common issues identified in audits.

Summary of Issue

WI Misclassification Inquiry relates to an audit, examination, or enforcement action focused on how the business classifies, pays, and reports its workers. It is typically issued when State or local enforcement agencies concluded that platform or contract workers met the legal tests for employee status.


Agency
Wisconsin labor / employment or UI agency
Location
Wisconsin
Issue Type
Worker classification – employee vs independent contractor
Risk Level
Medium
Common Reason
State or local enforcement agencies concluded that platform or contract workers met the legal tests for employee status.
Penalty
Back taxes, back wages, unemployment and workers’ compensation premiums, and civil penalties tied to misclassifying workers.
Fix Action
Work with legal and tax advisors to review worker roles, documentation, and reporting and respond to the agency by the stated deadline. Re-evaluate contractor relationships, reclassify workers where required, and update contracts, onboarding, and payroll practices to match legal standards.
Year Range
Typically reviews 3–4 years of records; in serious or repeat cases, the lookback period can extend further.
Industry Examples
Rideshare and delivery platforms, on-demand home services, marketplaces, and app-based field service networks.

How TCWGlobal Helps Companies Facing a WI Misclassification Inquiry

Letters like the WI Misclassification Inquiry often occur when organizations experience gaps in documentation, worker classification, onboarding processes, or payroll reporting. These issues become more common as companies scale, work with more contractors, or manage projects across multiple states and agencies.

TCWGlobal helps by supporting compliant payrolling for workers you already sourced, centralizing documentation, maintaining accurate worker records, and ensuring onboarding and reporting remain consistent across all projects and departments.

For industries like Rideshare and delivery platforms, on-demand home services, marketplaces, and app-based field service networks., where audits related to Worker classification – employee vs independent contractor commonly appear, our team reduces risk by helping clients maintain clean worker files, correct classification, and auditable payroll data.

When issues arise, TCWGlobal supports you in preparing required documentation, correcting records, and implementing processes that help prevent future Wisconsin labor / employment or UI agency assessments or penalties.