Statutory Employee

A statutory employeeis a person in business for him/herself, but who is treated as an employee for tax purposes. Some examples of statutory employees are:

• Corporate officers
  
• Agent drivers or commission drivers (for example, food and beverage delivery drivers)
  
• Full time life insurance sales people (in relation to the life insurance company they work for)
  
• Homeworkers providing services
  
• Traveling or city sales people who solicit orders

These individuals are exempt from FICA taxes if they have made a substantial investment in facilities used with their services.