Is the way out to fire all your employees and take them back
as private contractors? It`s been done before.
No, the government is massively cracking down on the concept of "private contractors". That way lies madness.
You have to be able to prove that the place you work with is not your only source of income, and have workers comp insurance, if you can't prove either of these things you are considered an employee of the place you are working and thereby both of you are subject to any taxes and whatnot the government would like to impose.