Most of them never solved it they just did "good enough" and haven't had any issues. Most people are open to solving things without involving the government or just drop the issue and walk away. Everything will be fine for until they get someone who's not ok with it then they get raked over the coals for what they thought was "good enough".

All of the (objectively) stupid people I know who successfully own and run businesses with employees, and the people on this site clutching their pearls at the thought of having to fill out ~5 forms.

If you're unable to grow your business because you are scared about a step required to grow your business you aren't going to grow your business. Nobody owes you this. Risk aversion isn't anyone else's fault.