Independent Contractor Based For Fedex
Description
How to fill out Determining Self-Employed Independent Contractor Status?
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FAQ
It used independent contractors as a lower-cost, flexible workforce, which FedEx found attractive. Primarily an airline, FedEx wanted to get into the ground business, so it acquired RPS in 1998. By 2004, it had 16,200 owner-operators, who each took on a route and all the responsibilities of running their own business.
Yes, they are. Taxes, insurance and retirement are taken out of paychecks.
As of , the average weekly pay for the Fedex Ground Contractors jobs category in California is $1,071 a week.
By classifying the drivers as independent contractors, FedEx has avoided paying legally required benefits like health insurance, worker's compensation, and other fringe benefits. However, a Federal Court has decided that FedEx ground drivers were misclassified as independent contractors in the past.
FedEx Ground route businesses operate as 1099 contractors to FedEx Ground. There are plentiful tax write-offs available to 1099 contractors that you should discuss with your CPA.