Ride Sharing Service Essay

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Independent contractors are self-employed, and due to not being considered employees, they are not protected by labor and relevant tax laws. Many employers, for example, Uber or another ride sharing service, take advantage of this to dodge taxes, avoid paying benefits, and evade various other liabilities. The definition of an employee is not completely black and white, and no one standard can differentiate between employees and independent contractors.
The "20-Factor Test" is an assessment of employment status by the Internal Revenue Service (IRS). The test is used to determine whether a worker will be defined as either an employee or an independent contractor. It uses 20 general questions across three categories: relationship of the parties, …show more content…

The drivers are not required to go through any training, though they must have a valid driver's license. The workers' services collectively are integrated with the success of the ride sharing company. In this case, the work performed is rendered personally. Ride sharing employees do not have the authority to hire any assistants. In my opinion, the worker does not necessarily have a continuing relationship with the employer. Also, the employees do not follow a set schedule or work full-time. The employees do not perform their services on company premises or use equipment owned by the company. These employees do not submit regular reports to corporate, and can receive their payment at any time in the app. The company does not pay for any business expenses and does not provide any materials. The drivers themselves invest in a vehicle to be able to earn money through performing rides. The payments to the workers are dependent on the number of rides they complete. Becoming a driver is available to the general public, and drivers may also do rides on competing apps or have another occupation, so they usually do not work for just one ride sharing company. Finally, the employee can be discharged for wrongdoings, and has the right to quit at any time without

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