There may be tax liabilities in other locations. Say, for example, you pay someone who does not declare their income and, assuming you reside in the same countr

There may be tax liabilities in other locations. Say, for example, you pay someone who does not declare their income and, assuming you reside in the same country, you end up being liable for their tax. Extreme scenario but can happen. Also, again in some countries, your tax authority may decide the person is actually your employee and not just a freelance contractor. Again, extreme, but a risk if you are paying the same person on a regular basis. Paying via a third party platform usually absolves you of such hazards.