Independent Contractors as Statutory Non-Employees

        Employee or Independent Contractor?


There are two categories of statutory non employees: direct sellers and licensed real estate agents. These individuals are treated as self-employed for federal tax purposes if:

     1. Nearly all payments for their services as direct sellers
     or real estate agents are directly dependent on their sales
     or other output, rather than the number of hours they work

     2. Their services are performed under a written contract stating
     that they will not be treated as employees for federal
     tax purposes.