Statutory Employee(redirected from Statutory Employees)
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.
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.