Air Courers International v. EDD
Different tax results flow from whether a worker is classified as an employee or an independent contractor. Plaintiffs Air Couriers International (formerly known as Sonic Couriers of Arizona, Inc.), UPS Service Parts Logistics, Inc. (formerly known as Sonic Air, Inc., and Arizona Sonic Air, Inc.) and UPS Logistics Group (collectively referred to as Sonic) employ drivers to pick up and deliver packages in a timely manner. Sonic filed a complaint for refund against defendant Director of the Employment Development Department (Department) to recover employment taxes it paid for the drivers. Sonic argued the drivers operated as independent contractors, a claim rejected by the trial court following a court trial. Sonic appeals, contending the trial court employed the wrong standard, no substantial evidence supports the courts finding of employment status, and the court abused its discretion in holding Sonic liable for penalties. Court affirm the judgment.
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