Subcontractor pays

I have a regular ABN Sole trader Subcontractor he has asked tax to be taken at payment and remitted by us . I also pay his super. I have set him up as an employee as labor hire employment basis. He has been advised from his accountant this this is a wrong category. After some searching should it be Other (not reportable)??

He is regular, wants us to remit tax for him and  is happy with this arrangement and no issue with us either  . He wishes to claim as a contractor. He does not want to be an employee.  So by changing to "other" is this correct for this circumstance. 

Appreciate your advice .