We have an employee that has worked for us for a year that has moved out of our company boundary for a company vehicle.

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What outcome do you envision at this point?

I am not so let me open for a local expert since you posted on the US side.

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I am a New Zealand lawyer based in Wellington and will help you with your question today. Please wait while I read the question so I can make the most useful response

There is quite a difference between being a contractor and being an employee. As you are aware, he would then need to pay his own tax and GST rather than being on PAYE. He would need to factor in to his hourly rate all his other expenses. In some ways it can be easier for an employer if he is on a contract because it does reduce your administration costs. You can also cancel a contract of a contract much more easily than an employee. So those are factors which are helpful. In the end, as his employer, you will be looking at the cost of his employment and the benefit and how this will be best managed