The answer to this question depends upon whether or not your husband is truly a independent contractor (who receives a 1099) or an employee in the disguise of an independent contractor. Many attempt to compensate workers as an independent contractor and issue a 1099 to avoid withholding and payroll tax obligations imposed by federal law and workman's comp required by state law. If your husband's employer has been busted by the IRS or the state and he is really an employee in disguise, then it's possible they are requiring that your husband be treated as an employee subject to withholding. Having said this, usually a busted employer and not the former worker turned employee is responsible for payment of the back payroll taxes owed. I strongly recommend your husband seek the advice of an attorney experienced in payroll tax and worker classification issues.
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The answer is "yes," especially if you agree that the other party is an "employer." The "employer" has obviously decided that your husband is not an independent contractor, but an employee. If your husband does not have any other "customers" but the employer, that is a pretty good indication that your husband is, indeed, an employee and not an independent contractor. Go the IRS information on this topic at http://www.irs.gov/taxtopics/tc762.html to see how your husband measures up.
If your husband's employer believes him to be an employee as opposed to an independent contractor, under the law, then they likely have an obligation to do so and can be fined if they do not do this.
This answer does not constitute legal advice and you should contact an attorney to confirm or research further any statements made in this answer. Any statements of fact or law I have made in this answer pertain solely to New York State and should not be relied upon in any way in any other jurisdiction. Additionally, we also encourage you to reach out to us via Twitter (https://twitter.com/#!/employattorney) or Facebook (http://www.facebook.com/WhiteRicottaandMarks) if you have follow up questions as we do not monitor questions after providing an initial answer.