Tag: FedEx

FedEx to meet with IRS

FedEx will meet with the Internal Revenue Service audit team in the spring to discuss a tax assessment regarding the classification of owner-operators at FedEx Ground.

On Dec. 20, the IRS tentatively concluded that FedEx Ground’s pick-up-and-delivery owner-operators should be reclassified as employees for federal employment tax purposes. The IRS indicated that it anticipates assessing tax and penalties of USD 319 million plus interest for 2002. Similar issues are under audit by the IRS for calendar years 2004 through 2006.

FedEx said Dec. 21 that it would vigorously defend its position that the drivers are independent contractors. On Jan. 3, the carrier said it is preparing an initial response for a meeting with the audit team. The company said it expects final resolution to take a long time.

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Special Delivery: Bringing SMBs into the Global Shipping Network

“Each carrier has tools to make international shipping easier. DHL calls its ‘Trade Automation Services.’ UPS’ international tool is named ‘TradeAbility.’ FedEx has its Trade Network. You will have to register in order to access these tools, and some carriers charge a transaction fee for providing a service,” Mark Taylor, chief logistics officer at RedRoller.com told the E-Commerce Times.

The parcel carriers have been a huge factor driving the globalization of commerce, Taylor agreed.

“First, they see this as a high priority in their own growth and success,” he continued. “We can see this from some public statements from their CEOs. Mike Eskew, chairman and chief executive officer of United Parcel Service informs us, ‘Most of our 8 million daily customers at UPS are small businesses.

It turns out that small businesses make up 97 percent of all exporters and nearly 40 percent of exports’ total value, statistics pointed out by FedEx CEO Fred Smith, said Taylor.

“Second, international shipping is where their bread is buttered. Donald Broughton, an analyst who follows both UPS and FedEx for A.G. Edwards & Sons in St. Louis, tells us ‘Direct international is 23 percent of revenue for FedEx, but it’s the fastest growing part of their business, and it’s almost 20 percent for UPS. FedEx is the largest air freight carrier in Asia and UPS is neck-and-neck with DHL in Europe,'” he said.

UPS provides package delivery services to 21 of the top 25 e-tailers in the U.S. as ranked by Internet Retailer magazine, according to Donna Barrett, the company’s technology public relations manager. Tracking requests on UPS.com along average 15 million a day.

There have been more than 25,000 distinct integrations within the last 18 months of UPS Online Tools, which retailers can integrate into their Web sites, Barrett told the E-Commerce Times. These have enabled more than 748,000 individual users to access tracking, time-in-transit, rating and shipping information.

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FedEx Corp. Issues Update on Status of Tentative IRS Assessment Regarding Worker Classification at FedEx Ground

FedEx Corp. today announced that, in response to a tentative assessment by the Internal Revenue Service (IRS) on December 20, 2007 regarding the classification of owner-operators at FedEx Ground, the Company is preparing to meet with the IRS audit team to review their tentative assessment and to provide an initial response. It is expected that the meeting will occur in the spring of 2008 and that a final resolution of this matter will not occur for some time. The Company notes that some reporting concerning this matter has been inaccurate.

As disclosed in the Companys second quarter Form 10-Q filed on December 21, 2007, the IRS has tentatively concluded, subject to further discussion with the Company, that FedEx Grounds pick-up-and-delivery owner-operators should be reclassified as employees for federal employment tax purposes. The IRS has indicated that it anticipates assessing tax and penalties of USD 319 million plus interest for 2002. Substantially all of the IRSs tentative assessment relates to employment and withholding taxes for the 2002 calendar year and, if paid by the Company, would be fully deductible. Similar issues are under audit by the IRS for calendar years 2004 through 2006.

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FedEx holds positive view to China Express market

FedEx Corp. expressed great confidence in China’s time definite delivery (TDD) business in 2008.

The US-based company will meet new opportunities in expanding its businesses in China as its new Asia-Pacific transferring center at Guangzhou Baiyun International Airport is about to start operation in 2008 and the consuming market in the country is booming, said Eddy Chan, president of FedEx China.

The company has released its market promotion plan for 2008, with China as a focus. It purchased the stake of Tianjin Datian W. Group Co., Ltd. in their venture this March and Datian’s express assets in China, laying a good base for its plan in the country.

Besides, the US company started up its TDD services in China on June 28 this year, providing the services for customers in 19 cities of the country. It is providing overnight delivery service for over 30 main Chinese cities and next-day delivery service for over 200 cities in the country.

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FedEx Express CEO sells and acquires shares

FedEx Express president and CEO David J. Bronczek has sold 50,000 shares of FedEx Corp. common stock and acquired 50,000 shares.

According to a Form 4 filed with the Securities and Exchange Commission, the transactions were completed on Dec. 26 and Dec. 27.

The shares were sold in quantities ranging from 100 to 10,900 at prices ranging from USD 92.04 to USD 92.24. 2,885 shares with a value of USD 0 also were listed has having been disposed.

The acquired shares of FedEx stock were bought in one transaction at a price of USD 31.98 per share.

Separately, Harrah’s CEO Gary Loveman acquired 239 FedEx shares for USD 92.19, according to a Form 4 filed with the SEC. Loveman now has a total of 394 shares in the Memphis package shipper.

Shareholders of FedEx Corp. in September elected Loveman, chairman, president and CEO of Harrah’s Entertainment Inc., to the corporation’s board of directors for a one-year term.

Insiders file Form 4s with the SEC to report transactions in their companies’ shares. Open market purchases and sales must be reported within two business days of the transaction.

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