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?
I’m foreseeing plenty of sub $600 laborers/handymen who have died coincidentally during the tax year as part of your reportable accounting.
You’re the small business version of Jessica Fletcher in the “Murder She Wrote” fame, where large number of people died unexpectedly.
I have known people who have done that… they learn of some handyman/laborer dying and then cash expense things in their name with an invoice. IRS going to call a dead guy to verify work?