Can an independant contractor be paid in cash?

If my employer prefers paying me in cash, can I still be an independant contractor?

Can an independant contractor be paid in cash?
If you as an independent contractor accept cash as payment, then it's between you and the company with whom you contracted the work. However, you also call that company your employer. Which is it? The IRS has a lot to say on the topic of treating workers as contractors who should rightly be treated as employees.





Here's a quote from their site:





"It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.





Before you can determine how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. The person performing the services may be -





*An independent contractor


*An employee (common-law employee)


*A statutory employee


*A statutory nonemployee





In determining whether the person providing service is an employee or an independent contractor, all information that provides evidence of the degree of control and independence must be considered...."





more here:
Reply:Very good points Connie.





Payment from an employer to an employee can always be in cash. But that does not alleviate either of you from the reporting guidelines defined by both the IRS, and the Labor department.





Think of it this way, most pizza delivery persons are deemed Independent contractors by the establishments that use them to deliver their products. Do you the client tip them in cash or with a check?