Generally, it is possible to pay final mile delivery drivers as independent contractors, also known as 1099 workers, under certain conditions.
To classify workers as independent contractors, you must ensure that they meet the IRS criteria for independent contractors. This includes factors such as the degree of control you have over how the worker performs their job, the type of work being performed, the level of supervision required, and the nature of the relationship between you and the worker. If the worker meets the criteria for an independent contractor, you can pay them as a 1099 worker.
However, misclassifying workers can lead to legal and financial consequences, including back taxes, penalties, and fines. Therefore, it is important to consult with a qualified tax professional or employment lawyer to ensure compliance with state and federal laws.