Sunday, January 27, 2008
IRS vs. Fedex 's use of indepedent contractors
After reading this article and thinking about what we've learned about employees vs. independent contractors, my question becomes: what took the IRS so long to take action against Fedex? In my opinion, it is quite clear that the drivers were employees of Fedex and not independent contractors. They had to display the Fedex company colors and logo on their trucks. Seems to me that implies that he is an employee of the company regardless of who owns the truck. I doubt that he could go out and solicit business from other companies when his truck has the logo of a competitor on it, which an independent contractor is permitted to do. I think these truck drivers have been taken advantage of by Fedex and Fedex deserves to be penalitized by IRS. ss
IRS Deals Blow To Fedex On Use Of Contractors
It seems that independent contractors will now be reclassified
as employees by Fedex due to a preliminary finding by the IRS.
Even though the drivers own their own vehicles, Fedex has set a
series of requirements that govern their work and the Fedex colors
and logo is displayed on their trucks.
Because these drivers are subject to Fedex rules, can't choose
their own work hours and their services are part of the day to
day operations of Fedex, it seems the IRS made the proper decision by
classifying thesedrivers as Fedex employees. DB
as employees by Fedex due to a preliminary finding by the IRS.
Even though the drivers own their own vehicles, Fedex has set a
series of requirements that govern their work and the Fedex colors
and logo is displayed on their trucks.
Because these drivers are subject to Fedex rules, can't choose
their own work hours and their services are part of the day to
day operations of Fedex, it seems the IRS made the proper decision by
classifying thesedrivers as Fedex employees. DB
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