Employees have no choice and no insight into what contractor their employer outsources payroll and taxes to. Unless the employer is liable for trouble that thei

Employees have no choice and no insight into what contractor their employer outsources payroll and taxes to. Unless the employer is liable for trouble that their contractor caused there will be all sorts of perverse incentives - it has happened before that the cheap payroll contractor did not pay taxes although they said they would. The agency of choice and the liability must be with the employer, else all sorts of undesirable things will happen.