A Statutory Employee is a worker classified under IRS rules as an employee for tax purposes (e.g., certain agents or drivers), despite independent contractor status, affecting payroll.
- What is a statutory employee?
Answer: It is a worker treated as an employee for tax purposes. - What are examples?
Answer: Examples include delivery drivers or sales agents. - What are the tax implications?
Answer: Employers withhold Social Security and Medicare taxes. - Who defines it?
Answer: The IRS defines it under specific criteria. - How does HR manage it?
Answer: HR adjusts payroll for proper classification.
