Statutory Employees & Witholdings

I’m confused about statutory employees. My husband was a Restaurant Manager for a decently-sized restaurant company. His w-2 states they witheld federal income tax at what seems to be the expected amounts. Yet, they also list him as a statutory employee, which usually means they don’t withold federal taxes and we treat it like a 1099-misc.

Am I right to be confused, or am I missing something? Isn’t it contradictory to withold fed. taxes & list someone as a statutory employee?

NOTE: I’m confused about the standard designations of employees & W-2s. You do not have to give us tax advice. We aren’t looking for advice on what forms to fill out or what to deduct. Just whether this is as weird as it looks to me.

That has to be a mistake. There is no way that a restaurant manager at a “decently-sized restaurant company” is going to be considered a statutory employee (independent for income tax purposes). That isn’t the kind of job that would fall under that classification. The fact that they withheld anyway means it shouldn’t be too much of a problem.

That’s what we are figuring. I’m not a tax expert by any stretch, I just enjoy doing them. According to the IRS guidelines, he would have to be a salesman or some sort of independent contractor. He was only a standard restaurant manager (not a franchisee), at a regular, though schlocky, restaurant. *

We’re figuring when he changed his witholdings on his W-4, it got all sorts of messed up by HR. So he’s going to call them tomorrow.

However, if they are evil bastards trying to pull a fast one, we will, uh, be very confused about who to call to report such evil.

But thanks for confirming it’s an odd thing.

  • Yiddish likely spelled incorrectly.

I was right. It was a totally messed up W-2 and he is certainly not a statutory employee. New W-2 on it’s way.