Question

1.         List and describe the types of workers who, according to the IRS, are “statutory employees.”

2.         List and describe the types of workers who, according to the IRS, are deemed by statute to be independent contractors, regardless of how they would be categorized under the common law criteria.

3.         Are any of the types of workers in your answers to the first two questions treated as employees for some purposes and independent contractors for other purposes? If so, please describe the circumstances in which they are categorized each way.

Answer 1

1. According to IRS, statutory employee is an independent contractor who qualifies for employees treatment. It could include different type of independent contractor like-

A. Agent or commission based drivers like drivers who sells out door to door milk and vegetables and are paid commissions.

B. Life Insurance sales agent-full time Life Insurance sales agent are also treated as a statutory employee.

C. Home based workers are also treated as statutory employees according to IRS.

D. Travelling or City salespersons are also treated as Statutory employee.