Association check made out to cash for contractor

Is there any problem for an association to make a check out to "cash" to pay a non professional handyman type contractor for their work done? We are a small (9 unit single building) self managing for the time being and are having landscaping done by someone we found on Craigslist. Are there realistically audit implications for this? The total work is for $850.

Melissa is 100% correct.

Are you sending a 1099 to that contractor and is there a W-9? I sure hope so. If not, your HOA is violating tax law and sticking higher taxes on the rest of us, due to the contractor's underpayment with your HOA's help.

Thanks all for the responses thus far. To whom it concerns, and you know who you are, no need for negativity as the forum policies state. We are new to this until we find a new management company.

Negative? I was holding back on saying alot more things... Positive this wasn't a good idea... If that is the "Positive" you want to hear...

OP,

I’ll try.

I’m positive you should know better, and should have known better than to even consider doing those things.

Some years back, the INS was making a big deal about undocumented workers being hired by the big landscaping companies and being paid under the table. I'm not sure where the laws ended up, but I do remember noise about going after the people who hired under-the-table workers, since this is one of the tipoffs. So there is another potential pitfall.

As the others have pointed out, there are red flags all over this: audit, liability, violations of the law, questionable quality of work. When you have a bunch of experienced regulars jumping up and down saying "Holy cow, NO", it would be in your best interest to pay attention.

(I suppose this is negative and cynical, but this question is such as textbook example of what not to do, my first reaction was that we're being trolled.)