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Can I pay my first employee in cash?

Short answer

You can pay in cash only if you still withhold and report taxes properly. Paying “off the books” is illegal and risky.

Rules differ by state. This is general information, not legal or professional advice.

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Official sources

SBA: hire and manage employeessba.gov
IRS: apply for an EINirs.gov
USCIS: Form I-9uscis.gov
U.S. Department of Labor: wages and hoursdol.gov