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.