I have a client who is an appraiser.  She has other appraisers working for her and wants to put them on payroll; however, since they have eliminated the deduction for UN-reimbursed employee expenses, that really hurts the workers.  They spend a great deal personally (continuing education, licensing, etc.) and obviously mileage is a big deduction for them.  Can you withhold Federal and State tax and submit it along with other W2 employees for the company?  Or, are you only allowed to withhold backup withholding on a 1099 worker?