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It may still be appropriate to pay this consultant with a W-2, but it may also be more appropriate to pay him with a 1099. It depends on the specific facts and circumstances of your relationship and agreement with the consultant. It is very important that you classify him correctly because it is a hot button issue with the IRS.
The IRS looks to three areas in determining proper worker classification - Behavioral, Financial, and Type of Relationship. A good quick overview can be found on the IRS' website.
There is a list of 20 questions that the IRS uses to help identify employee vs independent contractor.
Generally, the more freedom and control the individual is, the more likely it is they should be treated as an independent contractor and receive a 1099. Generally, the more control you have over the individual, the more likely it is they should be treated as an employee.
Did you have questions on that information?
No, you answered it perfectly. Thank you!