A section 530 employee is an individual who performs personal services for an agent under a written contract. The agent is responsible for withholding, reporting, and paying the employee's share of Social Security and Medicare taxes. This arrangement is also known as an 'agent for service of process' or 'statutory employee.' A regular employee, on the other hand, is an individual who performs services for an employer and the employer is responsible for withholding, reporting, and paying the employee's share of Social Security and Medicare taxes.