Just remember you will be paying all the taxes and insurance you are "saving" the contractor out of your 1099 so that "top pay" starts looking a little smaller.
The good news is if you have a sharp pencil and a knack for the Schedule C you can shave that quite a bit. Just be sure you follow the rules and keep good records or the IRS man will get you.
I prefer 1099s to W2s myself but I am a computer geek who records everything and I can bury the tax man if he calls. On my two audits they ended up writing me a check.
