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?
Another way to look at this: I get paid cash for random transactions throughout the month. Consider it a petty cash account that covers costs such as this. I have a few vendors who only take cash.