If i have w2 box 13 statutory employee can that income be considered as business income?

I was a contractor till March 31st and the same company got me in as a full time. The agency that had me as contractor till March did not have Box 13 checked for statutory employee. The company that hired me full time from April-Dec 2024 had the box 13 checked for statutory employee. Will the income from second / full time remote work company be considered as business income?

726

Expert Alumni

Mar 9, 2025 7:52:37 AM

Yes.

If none of your FICA tax was withheld (Social Security Tax) from any of your income, then all the income would be Self-Employed/Business income

New Member

Mar 15, 2025 2:08:05 PM

My FICA tax was with held in my W2. So that makes me statutory employee or not

Expert Alumni

Mar 17, 2025 10:44:45 AM

A statutory employee is a hybrid between a regular W-2 employee and a self-employed individual.

The box 13 check mark is the key.

A statutory employee will have half of Medicare and Social Security paid by the employer.
They can also establish a business and deduct their business expenses.

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If i have w2 box 13 statutory employee can that income be considered as business income?