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?
There’s no upside to you for paying him off the books, unless you’re also running the business that way.
Offer to pay cash, but remind him he’s still getting a W-2 for it, and I imagine he’ll change his tune.