² Disclaimer: If you’re uncertain, speak to your accountant, but sub-contractors who do not rely on you as their sole source of income are not considered employees and do not have to have taxes withheld. However, at the end of the year, you will probably have to issue Form 1099 to those who are not incorporated businesses themselves. If payment is below a certain threshold—at this writing, $600—then no reporting is necessary. This is not meant to be legal or tax advice, and you should consult your CPA for definitive policies for your practice.