Can I Pay Contractors on a 1099 vs. a W-2
In order to pay someone as an independent contractor in the U.S.A., you must meet all the qualifications that are listed on www.irs.gov.
In most instances, your contractors will not qualify as an independent contractor and must have taxes withheld from their paychecks. I would suggest that you print out the list on the IRS site, talk to you attorney and accountant and then make your decision.
You don’t want to pay heavy fines and back taxes in the future which could literally put you out of business.