Statutory Employee Overview
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Wages:
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FICA withholding required
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Federal withholding not required but may occur
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Statutory Employees:
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Agent and commission drivers
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Full-time life insurance sales agent
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Home Workers
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Full-time traveling or city salespeople
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Reporting:
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Income is reported on Schedule C (do not combine with non-statutory income)
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Do not include a Schedule SE for the statutory employeeincome (software should handle if properly coded)
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Related IRC and IRS Publications and Forms
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Forms W-2 and W-3 Instructions
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Publication 15-A - Employer's Supplemental Tax Guide (Supplement to Circular E, Employer's Tax Guide, Pub 15)
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IRC Sec 3121