Realistically, enforcement is questionable. I know that I've seen them but usually I dealt with large companies so I cant say how common it is for small businesses.

Odesk and elance definitely have this problem and they're required to file them but realistically I dont know how aware they are of these issues or how they're handling them. Can't say definitively =X. But, legally they should be doing all of this as well. =)

oDesk handles all financial transactions, sending secure payments to contractors across the globe. Just use our Work Diary to review hours, and we’ll take care of the rest!

I think you pay oDesk, and they pay the freelancer, so you're just paying a vendor and don't have to deal with taxes.

I thought he was asking if oDesk properly handles taking care of the 1042s on their side.