Flight Dept Advantage (FDA), a provider of start-up and operational services for flight departments, launched a program that “relieves an aircraft owner of all direct obligations related to payroll taxes, benefits and workers compensation while addressing IRS, FAA and other regulatory pitfalls.” Called FDA HR Advantage, it works with clients’ professional advisors to create a customized solution specific to each aircraft owner’s operation, business structure and goals.

According to the company, the program helps clients avoid potential taxes and fines from the IRS, states and insurance agencies caused by the “widespread practice of misclassifying pilots as independent contractors.” It can also be used “to minimize any tax issues resulting from the IRS’s recent attempt to subject an aircraft owner to the 7.5-percent federal excise tax on payments to their management company for Part 91 flights,” FDA claimed.

FDA HR Advantage offers two levels of service–one for aircraft owners and other aviation employers who do not want to be a direct employer, and a consulting service for larger flight departments that want to remain direct employers. Under the first option, FDA becomes the direct employer and takes care of payroll, benefits and other HR functions.