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?
Would guess has to do with social security payments as they can only work so many hours. When I have to pay someone in cash, I record it as day labor in my books. That way still recorded where a 1099 Misc isn’t needed.