Updating statutory employee

If you have employees who are independent contractors but who under the common law are treated by statute as employees, you must specify a Y on the Statutory Employee data item on the Employee Year End Parameters topic on Employee Year-End Parameters (PR11.1). 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: Refer to Publication 15-A from the Internal Revenue Service for more information on statutory employees.