That's not unlike IR35 rules in the UK, where the government got sick of contractors acting as employees behind a limited company veil, paying a lot less tax ov

That's not unlike IR35 rules in the UK, where the government got sick of contractors acting as employees behind a limited company veil, paying a lot less tax overall. Companies wishing to hire contractors must absolutely not treat them like employees, those that are must be employed by an umbrella company and pay regular payroll taxes. HMRC, who pushed for the law, is however exempt and hires contractors the old way, outrageously enough.