I am a small company with 5 independent contractors that work for my company. I have been in business 15 years and always had independent contractors, because the turn over rate is so high! These contractors are now wanting federal taxes taken from their checks and sent in so they do not owe at the end of the year.

As a DBA company, can I do this without going into full blown payroll mode? I don't want to do that if I don't have too. I just want to take federal taxes out for them.

I have already been withholding the taxes from their checks, but I have not made any sort of payments yet.

Should I just hold the money until the end of the year and give it to them, or should I pay it in, and W2 them at the end of the year instead of them getting their 1099's?

Please advise.
Sincerely,
Lost and Confused