How do i merge multiple records into a single record
You can use PIVOT and dynamic SQL:

DECLARE @sql NVARCHAR(MAX) = N'', @cols NVARCHAR(MAX) = N'';
DECLARE @category NVARCHAR(20) = N'IT Queue';

SELECT @cols = @cols + STUFF((  SELECT ',' + QUOTENAME([Status])
                               FROM dbo.[Status]
                               GROUP BY [Status]
                               FOR XML PATH('')), 1, 1, '');

SET @sql = N' SELECT *
              FROM (SELECT  ''' + @category + ''' Category,
                            s.[Status],
                            q.StatusId
                    FROM dbo.[Status] s
                    INNER JOIN dbo.CactusQueue_Task q
                        ON s.Id = q.StatusId) AS d
  PIVOT (COUNT(StatusId) FOR [Status] IN (' + @cols + ')) AS p;';

EXEC sp_executesql @sql;