Matt Redler
Co-founder & CEO at Panther
But it's also a major compliance issue for two reasons. Number one, because it's tax evasion. Nobody's paying the local employer taxes. Number two, when it comes to IP—which is the most important thing for startups that are looking to get acquired or IPO—if the legal agreement between you and the individual you're working with does not accurately describe the relationship, it puts a lot of things into question. The IP is absolutely far from airtight. That's why our focus to date has been on making global employment so simple, affordable, and straightforward that there's no reason to misclassify.
Panther is a global payroll company automating employer of record services.