Another ‘solution’ is to hire only ‘contract workers’......
What I do. I’m very happy being a company of one. :)
Make them all entrepreneurs. If they perform at a expected level, they get full pay, as specified in the contract. If they exceed expectations, they get bonuses above and beyond the agreed rate.
I started typing my # 13, before your post appeared. We’re thinking along the same lines. I suspect that millions of small business owners are already making plans.
However, I doubt that it would work for individual “contract workers”. They would likely just be deemed to be employees — unless they did contract work for two or more companies. If several employees (say the accounting section) were laid off, they could form a service contracting business. Then they would just need to contract with their old employers, plus another business or so, on occasion. That should prevent them being deemed “employees”.
Also, co-location (working out of the same offices) would probably not be advisable. They could rent space nearby — even in the next office suite down the hall — and that should be sufficient to establish their independence.
Hiring contractors is impossible in many industries. The IRS simply disallows it. Period, prepare your audit papers.