Is it a vendor or an employee?

As you are reviewing your vendors for 1099 data, review each subcontractor closely to ensure you are classifying them correctly. There is much scrutiny from both the Federal and State level on the difference between a subcontractor and an employee.

Here is a good resource from the IRS: http://www.irs.gov/businesses/small/article/0,,id=99921,00.html

And from the State of Maine:
http://www.maine.gov/labor/misclass/employer_brochure_single.pdf

The biggest "tell" for an independent contractor is if this person does the same type of work for multiple businesses. I, as an accountant/bookkeeper, have multiple clients and am correctly classified as an independent contractor. However, if I had only one or two clients, I would have more difficulty proving this requirement.

If the situation looks gray, err on the side of employment. It may cost you more in employment taxes, but may cost you much less in the long run.