E1: 07: ADP Quarterly File Incorrectly Marks Field Code EE As Statutory Employee
Last updated on AUGUST 10, 2016
Applies to:JD Edwards EnterpriseOne US Payroll - Version 9.1 and later
Information in this document applies to any platform.
R89078502 and the R078301 currently look at the Tax Override screen in EE Master to see if an employee has a Flat amount of zero for Federal or State. When this setup occurs, the W-2 is getting marked as Statutory Employee.
Statutory employees are defined as:
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute (statutory employees) for certain employment tax purposes if they fall within any one of the following four categories and meet the three conditions described under Social Security and Medicare taxes, below.
- A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.
- A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
- An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done.
- A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer’s business operation. The work performed for you must be the salesperson's principal business activity.
In the definition from the IRS.gov website W-4 exemptions or overrides are not mentioned as a mean of determining the statutory classification.
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