What's the situation like if your employee opens a company and invoices you like a consultant ? I do this in Europe (admittedly I don't work for a single client exclusively) but it seems like the path with least friction for tech workers.
That also doesn't address that it is significantly cheaper for group health insurance in the US vs. individual. As a company I can be paying $400/mo vs. the employee who would be paying $2K for similar coverage.