Certified Payroll Professional Practice Exam

Which type of worker falls into the category of a Statutory Non-Employee?

1. Direct Sellers

2. FT life insurance agent

3. Individual with minimal investment

4. City salesperson with varied compensation

The correct answer is: Direct Sellers

A statutory non-employee is a worker who is treated as an independent contractor for federal tax purposes but is considered an employee under certain statutes for employment tax purposes. Direct sellers are a common example of statutory non-employees as they operate under specific conditions outlined in the tax code. In contrast, the other options do not fit the criteria for statutory non-employees. Full-time life insurance agents, individuals with minimal investment, and city salespersons with varied compensation do not typically fall under the classification of statutory non-employees.