Statutory employee

If you have employees who are independent contractors but who under the common law are treated by statute as employees, you must check the Box 13 Statutory Employee field located at Payroll Administrator > Regulatory Reporting > Year End Reporting > Employee Configurable Fields. If an employee is defined as a statutory employee, an X prints in Box 13 of the W-2 and a statutory status is recorded on the electronic file.
Note: See Publication 15-A from the Internal Revenue Service for more information on statutory employees.