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?
Others have covered the issue with him specifically. If you have other employees in addition to him, consider that they too suddenly may want to be paid in cash. If you do it for him, they will have a hard time understanding why you wouldn’t do it for them, even if you explain his age and limited hours.