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?
Your accountant should have the answer to this. Usually it means printing out two physical payslips with hours worked and taxes deducted etc so that the business copy of it can be signed by the employee as received in full and that the employee agrees with the hours worked.