How is FedEx the contractors sole customer? Who are all those people they pick up packages from and deliver them to?
Did FedEx dictate whether the "contractors" could charge those other people additional delivery charges in the conduct of their "business". An independent contractor would be setting their own rates to charge FedEx, and also whatever they could charge their "other" customers for pickup, storage, transportation, and delivery.
That's what "businesses" do.
If the FedEx contract restricted the "contractor's" ability to charge "other customers" whatever their particular markets would bear, then they were not very "independent".
—”How is FedEx the contractors sole customer..”—
From what I understand. The ground service is handled by bid. You bid for the contract. Delivered in your trucks that are emblazoned with FedEx ground logos.
Fed Ex is the only client. In my book, these guys work for FedEx.
Those people are FedEx customers (or rather the senders are). The delivery guys get their money from FedEx for a service performed for FedEx. I think this position by the IRS is a crock. The contractors no doubt paid their 15.3% SSI tax as required, so now if the IRS can recover it from FedEx, they will be getting paid double. Anybody want to bet me whether checks will be automatically forthcoming to refund the money the drivers wouldn’t have owed if they were employees?
......Who are all those people they pick up packages from and deliver them to?......
They are delivery sites.
The solution is for the contractors to be corporations rather than individuals. Corporations can deal as they please with vendors.