Step 1 Research the "20-Factor Test." Through Internet research, review the "20-Factor Test" that courts and the Internal Revenue Service (IRS) use in determining whether an individual is an employee or an independent contractor. Step 2 Write a paper applying the "20-Factor Test" to a scenario. Describe a hypothetical scenario involving the question of whether an individual is an employee or an independent contractor and issue a determination (based on the hypothetical you have created, and applying the "20-Factor Test" to your hypothetical) as to whether the person is an employee or an independent contractor. note: this subject is (Business Law)

One of the most topical cases of contractor vs. employee is the class action lawsuit against Uber, in which the ride-share pioneer's drivers claim that the parent company is improperly classifying them as independent contractors to shirk legal responsibilities that it would have towards proper employers.
For instance, Uber drivers often expend large amounts of capital on gas, vehicle repairs, cleaning supplies, and other necessary goods for the role of ride-share coach. Independent contractors are fully responsible for expenses incurred in the completion of their tasks, while employees are generally not. As a result, the distinction between independent contractor and employee could amount to thousands of dollars for an individual driver.
We will of course be unable to definitively conclude one way or another until the courts reach a final determination. However, analyzing the test is an interesting exercise, and it illustrates precisely why the case is a case, not a clear-cut summary judgment one way or the other.
Instructions: No, Uber drivers work on their own schedules and can turn down individual fares.
Training: No, Uber drivers just have to drive. Training is minimal.
Integration: Yes, drivers are the backbone of Uber's business model.
Services Rendered Personally: Yes, Uber drivers cannot subcontract.
Authority to Hire: No.
Continuing Relationship: Yes, Uber drivers can stay for years.
Set Hours of Work: No.
Full-time Required: No.
Place of Work: No, Uber drivers never set foot in Uber headquarters.
Sequence of Work: No.
Reporting Obligations: No.
Method of Payments: No, Uber payments are fare-based.
Payment of Business and Travel Expenses: No--though this is part of what the lawsuit wants to changes!
Furnishing of Tools and Materials: Mostly no, but Uber drivers must use the proprietary Uber app for finding, charging, and logging fares.
Investment: Sometimes. Many drivers use their own personal vehicles. However, others purchase new vehicles specifically for ride-sharing; in fact, some dealerships often discounts to Uber drivers.
Risk of Loss: No, there are no fixed payments. If no one rides, no one gets paid.
Working for one company: No, many drivers run both Uber and Lyft and pick the most favorable fares.
Availability of Services to the General Public: Yes, most states have hackney laws that prohibit drivers from picking up members of the public outside of the umbrella of ride-share company services.
Right to Discharge: Yes
Right to Quit: Yes
That's 6 "Yes," 2 "Maybe/Sometimes," and 12 "No," making it seem likely but by no means certain that Uber's drivers are operating as independent contractors (at least, according to the IRS. Individual states may differ).
https://sanfrancisco.cbslocal.com/2018/04/30/uber-lyft-drivers-catch-break-california-supreme-court-ruling/

https://www.wwu.edu/bservices/purchasing/docs/ICvsE_20PointTest.pdf

The IRS has developed the "20-Factor Test" (see the link below) to determine whether a worker is an employee or an independent contractor. Employers must provide certain benefits to their employees, including honoring workers' compensation requirements, withholding FICA (Federal Insurance Contribution Act) taxes (including Social Security and Medicare) and paying a portion of FICA taxes, and giving employees time off to vote. Some employers also provide employees with medical, dental, and other plans. 
The "20-Factor Test" includes such measures as whether a worker can choose his or her hours or has control over his or her work. Generally speaking, an independent contractor can choose his or her hours, while an employee cannot, and an employee is subject to direct control of the employer, while an independent contractor is not. In addition, workers who are trained by the employer are usually employees, while independent contractors do not require additional training. In addition, employees usually have set hours and often complete their work at the employment site, in addition to other requirements.
A hypothetical situation in which the "20 Factor Test" might come up is a company's use of salespeople. For example, a medical devices company decides to employ people to sell their medical devices to doctors' offices and hospitals. If the salespeople need training before they can sell, they might be employees. However, if the salespeople already have this expertise and do not need additional training, they are likely independent contractors. In addition, if the employer allows the salespeople to determine their own hours, the salespeople are more likely to be independent contractors. If the salespeople are required to work certain set hours each week, they are likely employees. If the salespeople can largely work off site, visiting doctors' offices and hospitals and not usually working at the medical device company, they are more likely to be classified as independent contractors than are people who must work from the office. If the salespeople are independent contractors, they would likely not receive reimbursement for traveling expenses and might make a profit or loss from their work. Employees are generally reimbursed for travel expenses and are paid by the hour, week, or month. These factors will determine whether the salespeople are employees or independent contractors.