CIRCULAR LETTER 2799 - JANUARY 8, 1998

CIRCULAR LETTER 2799 - JANUARY 8, 1998

PROCEEDINGS OF THE WISCONSIN RATING COMMITTEE

TO: Members of the Bureau

FROM: Donna Knepper

RE: Independent Contractor - Employer vs. Employee

The independent contractor definition found in s. 102.07(8), Wis. Stats., as been amended as follows:

"2. Holds or has applied for a federal employer identification number with the

federal internal revenue service or has filed business or self-employment income tax returns with the federal internal revenue service based on that work or service in the previous year."

The Bureau of Legal Services for the Worker’s Compensation Division of the Department of Workforce Development has clarified that, when an independent contractor purchases a policy, the "general contractor" is not responsible for the worker’s compensation coverage for the independent or for the employees of the independent.