I'm guessing part of the reason for startups specifically is, US remotes will be shown as employees, while non-US remotes will technically be contractors, thus

I'm guessing part of the reason for startups specifically is, US remotes will be shown as employees, while non-US remotes will technically be contractors, thus not counting towards the head count - which is one of the things that determines the valuation once the company is flipped in an IPO or acquisition.