A statutory employee is a specific employment classification in the United States tax system. This classification is used to determine the tax treatment of certain workers who perform services for a company. Statutory employees are considered as employees for tax purposes, and their employers are responsible for withholding income and payroll taxes on their behalf.

Example
An insurance agent who works for an insurance company on a full-time basis and receives a fixed salary may be classified as a statutory employee. In this case, the insurance company would withhold taxes from the agent's paycheck, just as they would for traditional employees, because the agent's work is integral to the company's business operations.