Donald drives for Super, a company that provides a network for drivers to pick up and drop off customers who need a ride. The service is very similar to a taxi service. The individuals driving for Super have their own cars and their own insurance. They work whenever they like. The driver logs into an application that notifies her when a Super customer needs a ride. She confirms that they will provide the ride and she is off. The passenger pays Super directly and Super later remits payment to the driver.

What factors in this scenario would be used to determine whether Donald is an employee or an independent contractor? Discuss, using external sources to back up your assertions, why employees have a different status from independent contractors. Is there any reason or justification for treating employees and independent contractors similarly for these purposes? Why does the IRS care so much about this distinction? Why does California, as an example, want to end these "gig-economy" relationships, even if it means the shutdown of entire industry models?