Statutory Employee Essay

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Simply put, an employee is someone who works for your business. However, the true definition of employee can go deeper than that. You may have several types of employees on your team, including: Full-time employees Part-time employees Temporary employees Independent contractors Statutory employees and statutory non-employees Interns Volunteers As your business grows, you may choose to work with several types of employees. Each can contribute to the overall good of your organization, and will serve a different purpose within your business. Knowing how to classify your employees is important, not only because classification impacts how you interact with people on your team, but also because failing to properly classify…show more content…
Statutory Employees and Non-Employees Statutory employees and statutory non-employees are two types of independent contractors. Statutory employees are often salespeople who work on commission. In some cases, you must withhold and pay Social Security and Medicare taxes for statutory employees. explains, “A statutory non-employee is an independent contractor or self-employed worker whose service may appear to be that of a type of employee called a statutory employee, but whose type of work has been specifically exempted from … such status.” Licensed real estate agents are one example of statutory non-employees. In most cases, you can treat a statutory non-employee as an independent contractor for tax purposes. Interns Hiring interns may be an affordable — and in some cases practically free — way to add talent to your team. In most cases, you should treat your interns as temporary employees. In order to use unpaid interns, the internships have to fulfill the criteria outlined by the Department of
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