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?
Every country has a threshold, and the US I think you can make about $15,000 to $30,000 (depending on single/married) before it impacts your Social security and it’s all tax-free, in the UK it’s about $12,000.
This might be a situation where the gentleman doesn’t understand that he is allowed to work some amount without needing to pay taxes on it or impacting his retirement.