How do I set up a statutory employee?

Employees

Add independent contractors to Payroll. The IRS defines a statutory employee as "...independent contractors under common laws, such workers may nevertheless be treated as employees by statute (statutory employees) for certain employment tax purposes" (www.irs.gov). The categories and conditions an employee needs to be to be a statutory employee are listed at www.irs.gov.

You can use the W-2 Form options in the employee's record to report the employee as a statutory employee on the employee's W-2 Form.

Setting up a statutory employee

1. Open Connect Payroll > Employees > Modify Existing Employees.

2. Use the field titled Employee to enter the employee name or number. Press Enter.

3. Click to select the Job tab.

4. Click to select the Job subtab.

5. Find the section titled Include on W-2 Form.

6. Click to select the checkbox titled Statutory.

Payroll reports the employee as a statutory employee on the employee's W-2 Form.