Can a contractor be paid by cash only?

Yes, a contractor can be paid in cash only, but this arrangement should be clearly documented in a written agreement to avoid misunderstandings. Both parties should be aware of tax implications, as cash payments may not be reported to tax authorities. It's also advisable to provide receipts for cash transactions to maintain a record for both the contractor and the client. However, some contractors may prefer other payment methods for security and traceability.