Statutory Employee Definition

A statutory employee is a worker who is not a common law employee but is treated as an employee for certain payroll taxes.

Statutory Employee Extended Definition

Statutory employees are contractors who qualify for employee treatment. A statutory employee’s earnings are subject to Social Security and Medicare tax withholding. Employers are not required to withhold federal, state, or local income taxes from statutory employees’ wages.

Even though they are technically contractors who work for themselves, statutory employees receive Form W-2.

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Last Updated By

Rachel Blakely-Gray | May 01, 2023