Has anyone dealt with income reported on a 1099 MISC where the company provided the individual with a memo stating they were a  "Statutory Employee   Sales Representative" and the IRS entitled the company with relief under Section 530 Revenue Act of 1978?  

This started out as a conversation between a group of friends but turns out there is an actual situation.

2 of us in the group thought all Statutory Employees had to be paid on a W-2 and the other 2 in the group say that if it falls in one of 3 categories it can be paid on 1099 but independent statutory employee is responsible for their 1/2 of FICA  

Any tie breaker thoughts out there?