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Follow these steps to enter a statutory employee W-2 and send the income to the Schedule C:

  1. Go to the Input Return tab.
  2. From the left of the screen, select Income and choose Business Income (Sch C).
  3. Enter the Principal business or profession.
  4. Select the Principal business code from the dropdown list.
  5. From the top of the screen, select Income Statement.
  6. Scroll down to the Expenses section and complete any applicable fields.
  7. From the left of the screen, select Wages, Salaries, Tips (W-2).
  8. Enter the wages and withholdings as reported on the W-2.
  9. Scroll down to the Box 13 subsection.
  10. Check the Statutory employee box.
  11. Select the Schedule C name or number, if statutory employee from the dropdown list.
 

If you make an entry in the W-2 earnings as statutory employee [Override] field on the Schedule C screen, it will override the amount carried from the statutory employee W-2.

Additional information on the Schedule SE

ProConnect Tax Online won't generate the Schedule SE for any Schedule C that's linked to a W-2. According to the Schedule C instructions, if you receive a statutory employee W-2 and there's additional Schedule C income, you must file two separate Schedule Cs—one to show the W-2 with related expenses, and another to report the self-employed income and expenses. See the IRS Instructions for Schedule C for additional information.

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