Which of the following is NOT a statutory non-employee classification?

Which of the following is NOT a statutory non-employee classification?

• A. Real Estate Agents
• B. Independent Contractors
• C. Direct Sales
• D. Freelance Writers

Answer: (D)

The classification of statutory non-employees is defined by the IRS for specific industries and types of workers. Statutory non-employees include certain workers who meet specific criteria for independent status, which exempts employers from having to withhold certain taxes for these individuals. Real Estate Agents, Independent Contractors, and Direct Salespersons are recognized as statutory non-employees when they meet specific conditions, primarily regarding the nature of their relationships with the hiring entity. For example, real estate agents often work under a broker yet operate independently in making sales; that reflects an independent nature aligned with statutory non-employee criteria. Freelance writers, on the other hand, do not typically fall under this classification. They are generally considered independent contractors, but their work does not specifically fit the IRS definition of a statutory non-employee unless they meet very particular conditions. These conditions are more stringent than those generally provided for the other listed roles. Therefore, freelance writers are categorized as independent contractors rather than statutory non-employees according to IRS guidelines.

The classification of statutory non-employees is defined by the IRS for specific industries and types of workers. Statutory non-employees include certain workers who meet specific criteria for independent status, which exempts employers from having to withhold certain taxes for these individuals.

Real Estate Agents, Independent Contractors, and Direct Salespersons are recognized as statutory non-employees when they meet specific conditions, primarily regarding the nature of their relationships with the hiring entity. For example, real estate agents often work under a broker yet operate independently in making sales; that reflects an independent nature aligned with statutory non-employee criteria.

Freelance writers, on the other hand, do not typically fall under this classification. They are generally considered independent contractors, but their work does not specifically fit the IRS definition of a statutory non-employee unless they meet very particular conditions. These conditions are more stringent than those generally provided for the other listed roles. Therefore, freelance writers are categorized as independent contractors rather than statutory non-employees according to IRS guidelines.