Hello, Here is a little back ground... I am in the middle of structuring a start-up business. Company is currently a C-corp, but we have plans to make a B-corp by Jan. 2017. We could be considered a type of scientist temp agency (Multi-state). We receive requests for proposals or consultants, and we place the scientist and charge client accordingly.

We have employees who will be salary (W9, W4 needed?), but we also have "subcontractors".
These subcontractors do not have their own business and would like us to deduct taxes from their check for them, but they are not a full-time or part time employee. They essentially get paid on a per contract basis. They would prefer to not have a 1099, and so would we since they increase their rates for independent contractor because they are taxed so much.

Is there another tax form I should use or another way to classify them as an employee?

I use Quickbooks...they told me to call the IRS and I can't get them on the phone. QB said we could set them up as a vendor, but I would have to 1099 them. Plus because of the different state tax factors, they are unsure of what forms to use or how to set up. Not technically an employee, but not an independent contractor. I would like to offer to do the tax aspect for them, but I am unsure of the best approach.

Any info. or help is very much appreciated! Thanks!