Earlier quoted context omitted.
This isn't just google, it's every company with contractors and employees. Microsoft learned the hard way to not treat contractors like employees. https://www.reuters.com/article/businesspropicks-us-findlaw-... Nobody else wants to learn that same lesson.
In my company I almost fired someone from HR for constantly forgetting how these contractor people are part of the team, invited to every event etc
If you took any employee benefits, the tax man could retroactively classify you as an employee and demand a huge tax bill from you.
So many contractors would refuse any such benefits even if they were offered. Some didn't care of course and took them anyway, but they were potentially setting themselves up for a huge legal and tax problem.