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Statutory Employee

Submitted by larry@lgreenwald.net on 26 December 2009 - 10:24am

I'm classified as a statutory employee (a good example would be a full- time life insurance agent that's affiliated with one carrier). We are not considered employees under the usual rules but have been declared employees under the federal tax laws so that our employers must withhold FICA taxes on our income. As statutory employees we are entitled to deduct our business expenses on Schedule C, and must pay income taxes on our net income since our employers are not required to withhold income taxes from their pay. What is the best way to enter values into the earnings grid to account for this 'middle ground' employment status?

Thanks,
Larry

‹ How To Model Work During Retirement? non asset income ›
Submitted by Dick Munroe on 27 December 2009 - 8:03am.
1

As long as your employer is withholding FICA, just enter your earnings and you should be good to go. Given your earnings, ESPlanner will figure out your FICA contributions and all other taxes. The business expenses are deductible special expenditures.

Best,

Dick Munroe

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