Small business tax help website
 

Statutory Employee

 

What is the definition of a statutory employee?

A statutory employee is a person that is treated partly as an employee and partly as being self employed.

 

When is a statutory employee treated as an employee?

A statutory employee is treated as an employee for social security and Medicare purposes.

 

When is a statutory employee treated as a self employed?

A statutory employee is treated as a self employed for income tax purposes.

 

How will I know if I am a statutory employee?

Box 13 of W-2 form will be checked if you are a statutory employee.

 

Examples of statutory employees

Statutory employees include:

  • full time life insurance sales people,
  • certain agent or commission drivers
  • traveling sales people
  • certain homeworkers

 

Tax treatment of income and expenses for statutory employees

IF you have expenses related to your activities as a statutory employee, report them on Schedule C. If you have no expenses, report your statutory employee wages directly on Form 1040 line 7.