The state of Wisconsin uses a strict nine-point test to determine whether a person is considered an independent contractor rather than an employee for purposes of workers' compensation. A person must meet and maintain all nine of the following requirements to be exempt from such coverage as an independent contractor (WI Gen. Stat. Sec. 102.07):
• Maintain a separate business.
• Obtain a Federal Employer Identification Number (FEIN) from the IRS or have filed business or self-employment income tax returns with the IRS based on work or service in the previous year. (A Social Security number cannot be substituted for an FEIN to meet this requirement.)
• Operate under specific contracts.
• Be responsible for operating expenses under the contracts.
• Be responsible for satisfactory performance of the work under the contracts.
• Be paid per contract, per job, by commission, or by competitive bid.
• Be subject to profit or loss in performing the work under the contracts.
• Have recurring business liabilities and obligations.
• Be in a position to succeed or fail if business expense exceeds income.
The Wisconsin Supreme Court has ruled that individuals who fail any point of the nine-point statutory test are not independent contractors. ...