can someone explain to me why the fedex ground in my area, bloomington california by fontana, still labels it's drivers as contractors, despite the company being sued for over 200 million and lost for the fact they was illegally labeling their drivers as contractors. they don't even pay their drivers benefits who work 60 plus hours a week and sleep in the trucks as team drivers.
i could be wrong on something here. but this whole thing i'm trying to wrap my head around.
fedex ground
Discussion in 'Report A BAD Trucking Company Here' started by kidz bop, Oct 6, 2017.
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Im in the same area and agree with what you said. I guess it is because 200 million is pocket change to them. They can do what they please and not care about the consequences.
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About 5 minutes of google would have found that...
Since you are talking teams, I'm assuming you are talking Ground Linehaul. They were never part of the settlements. It only applies the Ground Package Delivery folks. Linehaul is a completely different beast. -
Because they still are contractors, the lawsuits didn't change the overall FDX ground contractor business model, it just forced FDX to give the model a much needed overhaul, the main one being that contractors have to be incorporated and they can only be C or S corps, sole proprietorships and llcs are not accepted, this put a end to contractors operating as sole proprietors and classifying their employees as sub contractors and paying them on 1099s instead of w2s ,also it doesn't matter if you are a linehaul contractor or p&d contractor, both sides are subject to the current corporation requirements, also depending on the terminal location contractors may have the option to run under the standard contractor model or the newer ISP (independent service provider) model.
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Doesn't matter whether it was in the contract or not, most of those things put a person into the EMPLOYEE category versus INDEPENDENT CONTRACTOR designation. This is really basic IRS stuff here, seriously. Can't get much clearer than this:
Independent Contractor Self Employed or Employee | Internal Revenue Service -
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I never understood the diference between s- corp, C-corp and LLC. Even the accountant explanation was horrible.
A limited liability company (LLC) is a corporate structure whereby the members of the company cannot be held personally liable for the company's debts or liabilities. Limited liability companies are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.
An S corp is considered a "pass-through entity," which means the business itself isn't taxed. Instead, income is reported on the owners' personal tax returns.
When a small business incorporates, it is automatically a C corporation, also called a regular corporation. The most basic characteristic of the corporation is that it is legally viewed as an individual entity, separate from its owners, who are now shareholders.
S-corp- personal or individual taxation
C-corp- corporate taxation & dividends taxation Owner is a shareholder
LLC- Taxation like a sole proprietorship with the limited liability of a C-corp -
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Have you tried biting any necks? Always works for me!
Broke Down 69 Thanks this.
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