I've been aware for a long time about the distinction between employees and contractors, and the basic idea is clear enough to me. However, the difference betwe

I've been aware for a long time about the distinction between employees and contractors, and the basic idea is clear enough to me. However, the difference between contractors and vendors still baffles me. I don't issue a 1099 to Staples for delivering office supplies (though I realize we dodged that bullet by a hair a couple years ago). However, I do issue one to a guy I find on CraigsList to redesign my web site. In that case the difference seems obvious. But where is the line?