That was okay to buy a single route for what it grosses in a year. You drive it and after a couple years, you have made your money back. But it takes far far longer to make your money back when you have to hire drivers. And my understanding is that fedex doesn't want any owners acting as drivers under the new model unless paid as an employee by the corporation. That increases your expenses.
Buying a Fedex Ground Route
- Thread starter Xquestionman
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That was okay to buy a single route for what it grosses in a year. You drive it and after a couple years, you have made your money back. But it takes far far longer to make your money back when you have to hire drivers. And my understanding is that fedex doesn't want any owners acting as drivers under the new model unless paid as an employee by the corporation. That increases your expenses.
Very much so. It is incredibly difficult to manage if you are not out of a truck. Time off, vacation, sick day, quit/fire/disqualified employee, etc. you can get away with being an overflow guy but even that can get sketchy here and there.
That almost sounds like somebody embarking upon a business venture where success is not a sure thing. Like entrepreneurs, independent businesses.
Never say you are an independent business.
X will tell you in the near future how to fit in their future plans. You might fall on the right side of it but some won't. Unfortunately, some more"contractors" are going to join me at the bitter end of the bar.
More "super secret" insider info, eh Bounty?
I wish they'd hurry up before we finish ISP negotiating.
Just make sure you do your "due diligence".
I think you were the wise man that told me that or it was your sidekick iwbf
I probably am. But I say that to everyone coming into this.
It's not a matter of"coming into this", once your in and have some $ invested that's when X starts manipulating the rules they wrote in the contract. I'm going to enjoy what's coming.
Let's me know when it gets here. Probably not as monumental as you think because it's nothing new with them. You learn the steps and the dance goes on.
I'll let them tell you what to do like they always have done, in your independent business(hahaha)
Once again it comes down to how much unsecured high risk capital you are willing to put on the table.There are many factors that go into that decision but demographica have to be at the top of the list and contract language has to be ahead of that. By the way I found something interesting. A few months ago X demanded that the 150 named plaintiffs in one of the numerous class actions turn over their state and federal income tax returns for X to use as part of their defense claiming that the fact that the plaintiffs filed as self employed sole proprietors validated X's claim that they were " independent contractors". This was just another shameless and desperate ploy in an attempt to defend the indefenseable. Needless to say that the federal judge had to do some Basic Law 101 by rejecting with anger X's motion reminding X and it's counsel that the information they demanded was private and protected by law and that X and it's counsel knew it but the law doesn't seem to matter to X.The judge went on to point out that the plaintiffs had to file as self employed because X handed them 1099's and proclaimed them to be independent contractors there by placing the burden of proof that they were "independent contractors" on X not the plaintiffs. If you ISP's want to bet a truck load of borrowed money on the belief that this organization will always grant your equity participation it's rightful place when mapping out it future business stategy, good luck. At the same time there are probably just as many if not more who would no longer tolerate this type of corporate blackmail because of having positioned themselves in a manner whereby they don't have to tolerate it any longer and how ISP's can say that?
CJinx
Well-Known Member
Source? I expect that information would fall under the rules of discovery if it was to be used as evidence in court. Plaintiffs don't get to just withhold evidence.
Go to " fedex drivers class action lawsuit then go to the post: Fedex drivers TM privacy shielded in class action lawsuit. Just another outrageous attempt by X to defend it's "independent contractor " model. It's mentioned in more recent posts. Nevertheless you will be floored by what you read.
I wonder how many didn't have tax documents because they didn't file.
Also, do your tax documents actually hurt your final compensation? I mean if X paid you a total of $105,000 in 20007, is it the courts ruling that all of that compensation was wages and X has to reimburse for fuel, insurance, etc.?
In the case I pointed out was that X wanted those guys tax returns to be used to defend their claim that the plaintiffs were IC"s and the judge would have none of it. In addition I talked to a representative of the law firm representing the plaintiffs in a pending class action. I pointed out to that person that any future out of court lump sum settlements must be prorated over the years that the suit covered and must identify the portion of the settlement that represents a reimbursemnt for employer taxes that the IC payed but should have been payed by X. From what I understand from the CA settlement they were given a lump sum all in the year 2016 and the guys were subject to backup withholding and most likely will be put in a higher tax bracket.Unless they can go back in and amend their returns for the years in question then it would appear that they will be double taxed. Meaning that if they payed self employment taxes for the years in question and payed the federal income tax on self employment income which later was ruled to be employee wages then the settlement should be identified as reimbursement. Again I'm only going on the information I have obtained because I'm not part of the Ca settlement.
In another case with similar questions about IC status, but in front of the IRS, the IRS ruled that all payments from the company to the contractor was wages The IRS instructions were for the (now) employee to file amended returns, pay any unpaid employment tax the employer didn't pay, unless the employee paid SE taxes, in which case the employee may either still owe or be owed a refund if the statute of limitations hadn't passed for refunds. In addition, all the employees business expenses would be reported on schedule A, as nonreimbursed work expenses.
The end result would be that you could owe some tax if your expenses were more than 50% of your income.
For example-
if the employer paid you $100,000, and you had expenses of $60,000- Filing as independent you would have paid about 15% employment tax on $40,000 net, or about $6000. As an employee, the employer should have paid about $7500, (about 7.5% of $100k)and your share would be $7500 out of your earnings usually deducted before you get paid, and if you paid $6000 SE tax filing as an IC, you would still owe about $1500. But you might break even on your actual income taxes after using the deductions on your personal taxes.
On the other hand, if you had $40,000 in expenses out of $100k net, you would have paid about 15% of $60000 net income, or about $9000. Since as an employee, you should only have owed about $7500 as the employee share, and since you paid $9000, you would be owed a refund.
Since the case was started so long ago, the IRS may not even care. They can't go after fedex for taxes owed from 2002.
BUT (big but) you may still be better off refiling your taxes anyway, and if you owe, pay it even if the IRS can't force you to pay. If you are close to retirement, using the entire earnings as income could raise the amount you get from Social Security, or even disability or unemployment. I think any award from a settlement would count as income in the year you receive it. If I ever get a settlement I am going to see if I can get it spread out over one payment in Dec, and another in Jan, of whatever year.
Thanks dmac. What a piece of helpful information and it makes perfect sense. If you don't mind I am going to run a copy for my own personal use if there should happen to be a settlemnt inmy state and I live long enough. Clearly the strategy of X is to try to get this matter to die of old age but in the end I think they will discover that the best thing to do is to take a charge against earnings for a couple of quarters and settle the matter
I'm a little pissed off at myself but, I have a contractor at fedex ground that wants to hire me as a stepvan driver thing is i have 2 traffic convictions the the state of NY one was for SPEEDING IN ZONE 80-50mph zone on April 11,2014 the other was failure to stop at a stop sign on June 4th,2015 I have a defensive driving certificate from AARP if that helps... Do i even have a chance at getting hired? What are the odds? Should i even bother? I would love a answer for someone working at fedex ground in the HR department or a driver someone with knowledge or fedex ground experience. Thanks
