Statutory employees:
A)Report their expenses on Form 2106.
B)Include common law employees.
C)Are subject to income tax withholdings.
D)Claim their expenses as deductions for AGI.
E)None of these.

Question

Quizplus · Accepted Answer

Statutory employees claim their expenses as deductions for AGI (Adjusted Gross Income) on Schedule C, not on Form 2106. They are not subject to income tax withholding but are subject to Social Security and Medicare taxes.

Statutory Employees