Likely, the most well-known test for whether a worker is an employee came from the IRS in 1987—the 20 factor or 20 question test. As the name implies, it posed twenty questions, none of which are determinative on their own. They are:

Instructions: Is the workersuf required to comply with employer's instructions about when, where, and how to work? A contractor typically does not.
Training: Is training required? Does the worker receive training from or at the direction of the employer, includes attending meetings and working with experienced employees? Contractors normally do not need training.
Integration: Are the worker's services integrated with activities of the company? Does the success of the employer's business significantly depend upon the performance of services that the worker provides? Not so for contractors.
Services Rendered Personally: Is the worker required to perform the work personally? Contractors generally do not.
Authority to hire, supervise and pay Assistants: Does the worker have the ability to hire, supervise and pay assistants for the employer? Contractors may have their own employees.
Continuing Relationship: Does the worker have a continuing relationship with the employer? If so, likely an employee.
Set Hours of Work: Is the worker required to follow set hours of work? If so, likely an employee.
Full-time Work Required: Does the worker work full-time for the employer? This tends to show employment status.
Place of Work: Does the worker perform work on the employer's premises and use the company's office equipment? Contractors tend not to do so.
Sequence of Work: Does the worker perform work in a sequence set by the employer? Does the worker follow a set schedule? If so, likely an employee.
Reporting Obligations: Does the worker submit regular written or oral reports to the employer? If so, likely an employee.
Method of Payment: How does the worker receive payments? Are there payments of regular amounts at set intervals? Employees typically receive an hourly or salary pay.
Payment of Business and Travel Expenses: Does the worker receive payment for business and travel expenses? If so, supports employee status.
Furnishing of tools and materials: Does the worker rely on the employer for tools and materials? Contractors typically provide their own tools of the trade.
Investment: Has the worker made an investment in the facilities or equipment used to perform services? Contractors do.
Risk of Loss: Is the payment made to the worker on a fixed basis regardless of profitability or loss? If so, reflects employee status as they do not suffer risk of financial loss for a job poorly done.
Working for more than one company at a time: Does the worker only work for one employer at a time? Contractors are typically not bound to one company. Employees typically work for one employer at a time.
Availability of services to the public: Are the services offered to the employer unavailable to the public? If so, reflects contractor status (generally not subject to a non-compete). Employees work for one employer, usually.
Right to discharge: Can the worker be fired by the employer at any time? Reflective of employment at-will.
Right to quit: Can the worker quit work at any time without liability? Contractors generally must give notice of termination of contract.

More recently, the 20 Factor test has been modified and shortened by the IRS to cover three general areas of inquiry. They are:

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