I think FedEx is wrong and the IRS is correct on this issue....frankly I am surprised that it took the IRS this long to get a ruling.
Now a precident has been set for 2003-Current.
Frankly I like FedEx...its a great company but I think they have been, at the very least, “Immoral” in the way they treat their employees and attempt to avoid lawful taxes.
All employees that are classified as contractors have to pay for all benefits out of their own pockets....kinda cheesy in my opinion.
I wouldn’t treat MY EMPLOYEES that way.
Only YOU could choose the most appropriate plan for them, just as Uncle Sam is the only man who can set up a social safety net of things like the great and string Social Security, or Medicaid, or Medicare, or RRA, or Federal Pensions. Yes, mas-tuhs!
Or ....
Perhaps you might better thing of those folks with you as as ASSOCIATES, or even as partners and peers, and see that they can and SHOULD do these things for themselves as such things have NOTHING to do with your business.
That’s only true if you pay them the same per hour as a contractor without bene’s as you would as an employee with them. If you pay them a rate that includes the bene’s, as you should, it actually vests them with more options, more power, and more choices, and less paperwork and risk for you. I think everyone in the land except mamby pamby wussy pussy Democrats should be contractors.