FedEx Admits State Tax Authorities, IRS Are Investigating Contractor Model - Reuters
The Teamsters on Friday blasted Fedex Corp. (NYSE: FDX) for announcing plans to continue misclassifying its drivers as independent contractors although the California Supreme Court has declared workers there as employees. The company's independent contractor model is also being challenged by the IRS.
During a late afternoon conference call Thursday with reporters, FedEx admitted that its subsidiary FedEx Ground's independent contractor model is being probed by state tax authorities in addition to the IRS. FedEx managers would not go into any detail about the number of states looking into FedEx Ground's business operations nor the potential sum of any state back tax liabilities.
The Teamsters on Friday blasted Fedex Corp. (NYSE: FDX) for announcing plans to continue misclassifying its drivers as independent contractors although the California Supreme Court has declared workers there as employees. The company's independent contractor model is also being challenged by the IRS.
During a late afternoon conference call Thursday with reporters, FedEx admitted that its subsidiary FedEx Ground's independent contractor model is being probed by state tax authorities in addition to the IRS. FedEx managers would not go into any detail about the number of states looking into FedEx Ground's business operations nor the potential sum of any state back tax liabilities.