Yes, you will still need to issue a Form 1042 (s) to your contractor.
Per Instructions for Form W-8BEN-E, your contractor is the one supposed to provide you with the Form W-8BEN, the person from whom he or she receives the payment. For more information, click here https://www.irs.gov/pub/irs-pdf/iw8bene.pdf, page 3 under "When to provide Form W-8BEN-E to the withholding agent"
As far as the Form 1042 (s), you as the withholding agent is supposed to issue the form to the contractor so that he or she can file their US taxes based on the information from the form. For more information, click here: https://www.irs.gov/individuals/international-taxpayers/who-must-file
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
