I am also a NY state company -- you have to be careful about W-2 employees versus 1099. I would suggest what others have -- You should hire this guy as a 1099 and make him responsible, otherwise NYS can ding you for SUI, Disability and more -- including international taxes. I would also suggest if you don't have a payroll service or someone who is an expert in payroll then you should use the 1099 path