The problem is caused by the IRS and HMRC having secondary effects that make employers do this - whether every subcontractor sound be a subcontractor an employe

The problem is caused by the IRS and HMRC having secondary effects that make employers do this - whether every subcontractor sound be a subcontractor an employee is a different issue. There are arguments on both sides eg a Freelance Director of Photography is not going to want to be taxed as an employee.