What type of employees typically do not have taxes withheld from their paychecks?

Independent contractors typically do not have taxes withheld from their paychecks because they are considered self-employed. As independent contractors, they receive payment for services rendered without an employer-employee relationship. This means that they are responsible for reporting their income and paying their own taxes, including self-employment tax, directly to the IRS.

In contrast, statutory employees are a specific category of workers for whom certain tax withholdings may apply, despite their contracted status, as they are treated similarly to employees in some respects for tax purposes. Full-time salaried employees and part-time hourly employees generally have various taxes withheld from their paychecks, including federal income tax, Social Security, and Medicare taxes. These workers receive a paycheck where tax withholding is standard practice to ensure compliance with tax laws.