what is statutory form in income tax

Statutory form in income tax refers to a form created by the government that serves as a model form or a free form for the public. It is not directly related to statutory employees, who are independent contractors that are treated as employees for tax withholding purposes if they meet certain criteria. Statutory employees can also deduct work-related expenses on Schedule C when they file their annual tax returns, and employers send them W-2s instead of 1099-MISCs. The category of statutory employee refers to an Internal Revenue Service (IRS) classification of workers who are subject to tax withholding by statute under its common law rules. While employers are not permitted to withhold taxes for most independent contractors, they can for an employee who meets certain criteria, such as performing virtually all of the services as stated or implied by the employment contract.