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computation of the alternative minimum tax. See sec. 56(b).
“Statutory employees” are individuals in specified occupation
groups who are not common law employees. See sec. 7701(a)(20).
Instead, they are treated like common law employees solely for
purposes of applying the Federal Insurance Contributions Act
(FICA) under section 3121(d)(3). As independent contractors
under common law principles, statutory employees are not treated
as employees under sections 62 or 67. Also, statutory employees
are not subject to the self-employment tax on their earnings as
statutory employees.
Section 3121(d) provides, in pertinent part, as follows:
SEC. 3121(d). Employee.–-For purposes of this chapter,
the term “employee” means-–
(1) any officer of a corporation; or
(2) any individual who, under the usual common law
rules applicable in determining the employer-employee
relationship, has the status of an employee; or
(3) any individual (other than an individual who
is an employee under paragraph (1) or (2)) who performs
services for remuneration for any person-–
****** *
(C) as a home worker performing work,
according to specifications furnished by the
person for whom the services are performed, on
materials or goods furnished by such person which
are required to be returned to such person or a
person designated by him; * * *
****** *
if the contract of service contemplates that
substantially all of such services are to be performed
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Last modified: May 25, 2011