Statutory Employee is the employee who particularly works for a business. The employer in this condition doesn’t have the control to withhold the taxes from the employee’s payment. The employer can only withhold the social security and Medicare taxes from the payment paid to the employees. The statutory employee doesn’t have more control over their work requirements and activities, but they can only enjoy the freedom of working in the organization.
They are considered independent contractors who work as employees in the organization with more freedom. They are generally considered an employee only when certain taxes are withheld.