It refers to the independent contractor that acts as an employee for managing tax-related purposes of the company. The employers do not have to withhold income tax from the wages of Statutory employees. All statutory employees are independent contractors of the company but all independent contractors are not statutory employees. Such types of employees do not work regularly with the company and visit the premises when it is needed. An employee is considered a statutory employee if the employer and employee pay their share in medicare taxes and Social Security taxes. Here is a list of employees that indices under statutory employee
- Home bases employees
- Commission based drivers
- Traveling salesperson
- Life-insurance agents
