Generally, it is not a good business practice to cut a check with the names of both the contractor and subcontractor on the face of the check for the reasons that you mentioned, especially 1099 reporting. It may be that the subcontractor requires it so that they can be sure payment is received for their services instead of the general contractor spending the money elsewhere. You may want to pay the subcontractors directly. Subcontractors can put liens on property if they have not been paid. We also encourage you to post your question to the Forums & Messaging section of the site to get feedback from your peers about how they handle such payments. They can give you insight to circumstances where it may be appropriate or where it is not.
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