I’ve got a unique situation I am not sure how to handle. I have a retired gentleman who recently started working for me part time. We’re talking a day a week or less. He strongly prefers to be paid in cash. I talked to my insurance and they told me he is covered as long as I claim him on the annual audit. Are there any issues with paying him this way? Anything special I need to do tax or accounting wise?
Does he mean he wants to be paid under the table, cash only with no reporting to the IRS? That’s a slightly different issue than if he wants to be run through the regular payroll process - taxes paid and withheld - but instead of a check, receive cash.