There are three categories of statutory nonemployees: direct sellers, licensed real estate agents and certain companion sitters. Direct sellers and licensed real estate agents are treated as self-employed for all Federal tax purposes, including income and employment taxes, if:
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Substantially all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked, and
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Their services are performed under a written contract providing that they will not be treated as employees for Federal tax purposes.
Companion sitters who are not employees of a companion sitting placement service are generally treated as self-employed for all federal tax purposes.
Refer to information on Statutory Nonemployees located in Publication 15-A, Employer's Supplemental Tax Guide (PDF) for additional information.