What kind of workers does the IRS classify as 'statutory employees'?

Statutory employees are a specific category of workers defined by the IRS who receive a W-2 form for their income but whose earnings are not subject to income tax withholding, although they may have other types of taxes withheld, such as Social Security and Medicare taxes. This classification includes certain professions such as drivers, certain salespeople, and certain insurance agents, who, while technically classified as employees, operate in a manner similar to independent contractors for tax purposes.

By receiving a W-2 form, statutory employees still report their earnings as salaries or wages, but their taxation status differentiates them from regular employees because their employers do not withhold federal income tax on their earnings. This unique treatment is designed to reflect the nature of their compensation and work arrangements while still providing them certain employee benefits.

The other options refer to classifications that do not align with the IRS's definition of statutory employees. Freelancers and workers receiving 1099 forms generally fall under independent contractors, while all employees of a corporation include those who may have regular income tax withholding, which does not fit the specific criteria for statutory employees.