Sunday, January 27, 2008

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

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