Tax Tips for Temp Employees

"Hi, I’m Tom Choisnet, enrolled agent. This section is about statutory employees which is an interesting moniker given to people who work out of their home in certain life insurance salesmen and other people who can deduct their expenses toward adjusted gross income much the same as I mentioned with qualified performing artists. I have made some notes in that regard and I will share them with you. Salesmen who market their product to businesses, and certain life insurance agents, sales drivers such as a bread route, except for milkmen, don’t ask me why, except milkmen, and home workers where the supplies are furnished so you have quite often in the garment industry you have ladies doing their sewing at home and they can deduct the expenses they have against their W2 income. I have always, I have noticed here that they now simply say that it should be marked on the W2 that the individual is a statutory employee, so if they miss checking the box you can still use it. It comes in quite handy, particularly, handy quite particularly on the life insurance agents because some of those guys make some pretty good money and have pretty heavy expenses and this is where it is used and they don’t always check the box, so know this and thank you for watching."