According to the IRS, under the following conditions, these people are
considered employees by statute and are subject to certain taxes under certain conditions:
An agent (or commission) driver who delivers food, beverages (other than
milk), laundry, or dry cleaning for someone else.
A full-time life insurance salesperson, who sells insurance primarily for one company.
A home worker who works according to guidelines of the person for whom the
work is done, with materials furnished by and returned to that person or to
someone that person designates.
A traveling or city salesperson (other than an agent-driver or
commission-driver) who works full time (except for sideline sales activities)
for one firm or person getting orders from customers. The orders must be for
items for resale or use as supplies in the customer's business. The
customers must be retailers, wholesalers, contractors, or operators of hotels,
restaurants, or other businesses dealing with food or lodging.
See IRS Publication 15, Circular E, Employer's Tax Guide, for more
When you choose Statutory, QuickBooks marks the "Stat. Emp."
checkbox on the W-2 form for the employee(s) of this type.