What's the country? I'm in this situation in Poland and I'm running a company (sole proprietorship). I'd say the majority of IT work is done this way here for t

What's the country? I'm in this situation in Poland and I'm running a company (sole proprietorship). I'd say the majority of IT work is done this way here for tax benefits, even within the country. You may be doing the employee a favor this way (their costs can be written off), and you'll make things simple for yourself.