If Form W-2 with the "Statutory employee" check box checked has been entered into a tax return, the return will reject with code FW2-001-02 if the W-2 isn't associated with a Schedule C:
Reject Code: FW2-001-02
The sum of all Form W-2s, 'WagesAmt' must not be greater than the sum of ['WagesSalariesAndTipsAmt' in the return and (sum of all Schedule C (Form 1040), 'TotalGrossReceiptsAmt' when 'StatutoryEmployeeFromW2Ind' is checked)] unless Form 8958 or Form 8839 is present in the return. When evaluating this, a tolerance of $5.00 is allowed.
Earnings as a statutory employee must be reported as income in Schedule C. See here for instructions on how to correctly report statutory employee income in TaxSlayer ProWeb.
Additional Information: