Workers Comp should be looked at the same as having the proper license to perform the work. It is very foolish (mild choice) to have 'workers/employees' and not WC. Here in NJ....you could get some graybar hotel time, and/or a $$$$ fine.
That said; 'subs' need insurance, and you need to 1099 them.
A inexpensive 'payroll' system that works very well is Payroll within Quickbooks.
I started out with one guy...did the payroll with pencil & paper for a short while, then bought a PC; that had as much memory/speed as my old cell phone. The cash method may work in a pinch, but you (nor I) don't want to get pinched! With the general economy in the tank, both the Fed & local politicos are 'lookin hard' for funds.
