---
title: What are the Steps to Follow in Entering the Statutory Employee Income in ProWeb?
description: Income that has been reported on Form W-2 and labelled as Statutory Employee in Box 13 has to be entered in the following places in the Taxx Savage Program
---
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# What are the Steps to Follow in Entering the Statutory Employee Income in ProWeb?
Income that has been reported on Form W-2 and labelled as Statutory Employee in Box 13 has to be entered in the following places in the Taxx Savage Program:
- Enter Form W-2 in its entry menu. Check “Statutory Employee” Box 13; Income in Box 1 won’t flow into the Income Menu
- Enter W-2 Box 1 on Schedule C, under the Profits or Loss From Business section.
**How to create a Schedule C for statutory income**
- Go to the Federal Section of the Tax Return Summary
- Proceed to the Income section
- From there go to Profit or Loss from Business and complete the information as required then key in the Principal Business Activity Code
- Schedule C Data Entry Menu should be filled with the required information: name(if applicable) and address of the business and an EIN (if the employee has one). The employee’s SSN is not to be entered in this field.
- Select Income once done with the Schedule C Edit Menu
- In the Income Reported on Form W-2 as Statutory Employee section, enter the W-2 Box 1 amount.
- Then select Continue
- Select General expenses from Schedule C Menu in case the employee has business expenses that are associated with these earnings.
**Statutory Income Reported on Schedule C**
Deduction of the statutory employee’s business or trade costs from the income displayed on Form W-2 can be made by the said employee. A statutory employee’s earnings are reported as income on line 1 of Schedule C instead of on Form 1040 Line 1 as wages, salaries, tips, etc. The business of a statutory employee is not eligible for the 2% reduction of their gross income that has been adjusted.
- File separate Schedule C for every income. The self-employment income and statutory employee income should Never be combined.
- Never enter net statutory income on Schedule SE. Medicare Tax as well as Social Security are to be reported on Form W-2
NOTE: This is not to be mistaken for tax advice. It is a guide on how to enter statutory income in the Taxx Savage Pro program.
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