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?
Honestly as long as you pay him out of your pocket, who cares. Let the guy work that one day and have a pleasant retirement. The last thing anyone would want to do is jeopardize his retirement pension.
Or Medicare. I have an elder family friend who worked as a security guard/custodian at the same commercial building for 25+ years. When he retired with no personal assets, the building owners retained him to work part-time under the table. If his current income gets reported, he would lose Medicare coverage and have to pay out of pocket for lesser quality health care. He’s making $12 cash/hr. and buys groceries/clothing sometimes for some homeless people in his work area which he has befriended over the years.