Employer hires a payroll specialist on an independent contractor basis to provide payroll services for employer as specified in the contract.
Payroll Independent Contractor With Fedex
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Multi-State
Control #:
US-INDC-228
Format:
Word;
Rich Text
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How to fill out Payroll Specialist Agreement - Self-Employed Independent Contractor?
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FAQ
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.
In addition to their weekly compensation, contractors receive bonuses for things such as customer service and safety, among other items. From the weekly revenues paid by FedEx, contractors are then required to pay their business expenses, including employee salaries, fuel, insurance, etc.
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.
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.