If an independent contractor or subcontractor earns more than $600 at the time of publication by working with you during the calendar year, you must provide them with Internal Revenue Service Form 1099-MISC. The IRS provides instructions for completing Form 1099-MISC. While staff receive IRS Form W-2 for the revenue report, contractors receive IRS Form 1099-MISC. Sign documentation – The subcontractor must sign the agreement before concluding the work. In addition, the subcontractor must complete and sign Form W-9, which will then be used to establish 1099-MISC, which in turn will provide the IRS with details of the revenue paid to that subcontractor. A subcontracting agreement is an important legal document that defines the terms of a commercial agreement between a contractor and a subcontractor.