I have the same problem. Most of the answers here assume that the W2 has Statutory Employee correctly CHECKED. I have a W2 that (correctly) does not have Statutory Employee checked but this W2 is somehow linked to my side business (1099-NEC, Schedule C).
I have deleted the W2 and reloaded it, but the Schedule C Statutory Employee check box remains checked with the same error message.
Please address this use case.
