Statutory Employee

Statutory Employee

In the United States, a person declared an employee by law. Persons declared to be statutory employees include: full-time life insurance agents, drivers who distribute laundry, meat, produce, or beverages (excluding milk) to customers, individuals who work from home on material provided by an employer, or full-time salespersons who seek orders for resale on behalf of an employer. While statutory employees file their expenses on a Schedule C, they are not considered independent contractors and thus do not pay the self-employment tax.

Statutory Employee

A worker who is treated as an employee for social security and Medicare tax purposes and as self-employed for income tax purposes. The "Statutory employee" box on such a worker's Form W-2 should be marked.
References in periodicals archive ?
1.199A-2(b)(2)(i)] Wages paid to statutory employees (on Forms W-2, Wage and Tax Statement, where "Statutory Employee" is checked in box 13) should not be included in calculating W-2 wages.
Even though plaintiffs' decedent (Seay) worked at defendant's predecessor's (Celanese's) plant for nine years, performing important maintenance work, since Celanese had contracted with Seay's employer to provide maintenance work, and since Celanese was in the business of making polyester fibers and not in the maintenance work business, Seay was not a statutory employee of Celanese.
(192) The circuit court dismissed the lawsuit because it determined the plaintiff was the defendant's statutory employee, (193) and, according to sound precedent at the time, any claim filed against a plaintiffs statutory employer was within the division's exclusive jurisdiction.
Domestic Workforce Private Limited takes complete responsibility for all HR administrative activities, statutory employee benefits and compliances for the outsourced resources.
To further complicate matters, a person can be a statutory employee for FICA, FUTA, and Medicare purposes even if she is not an employee under common law rules.
The determination of who qualifies as a statutory employee turns on the facts of the situation.
The first phase will concern about 3,600 of the 8,700, covered by Kesko Pension Fund's statutory employee pension insurance (department B).
Some workers, such as salespeople, may not meet the tests for common-law employees, but meet the tests to qualify as a statutory employee. Statutory employees are not required to have federal income tax withheld from pay, but their pay may still be subject to Social Security, Medicare and FUTA taxes.
The court held, inter alia, that to qualify as a statutory employee under the Act, an individual must be engaged in an activity that "is a part of [the employer's] trade, business, or occupation" if it "(1) is an important part of the [employer's] business or trade; (2) is a necessary, essential, and integral part of the [employer's] business; or (3) has previously been performed by the [employer's] employees." The court found that none of the criteria was met.
CNA argued that it was entitled to a JNOV because Seay was what's known as a statutory employee of Celanese, making his lawsuit a matter for the state's Workers' Compensation Commission rather than a jury.
Income earned as a statutory employee would not be subject to self-employment tax but could qualify as QBI.
The company said that it will begin statutory employee negotiations immediately, and that it expects the measures to have an effect from the second quarter.