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Assuming you are acting just as his payroll company and accountant, then there really is no extra liability for you so long as you report the cash payments if they exceed the IRS amounts that require reporting ($10,000). If it does exceed $10k then you have to file the Bank Secrecy Act Currency Transaction Report.
You will also have to make ti clear that you are paying them on behalf of the company and not on your behalf. Many companies use a payroll companies to actually cut the checks and handle the accounting, the only part that is unusual is the fact that he wants to give you cash.
Also, you may want to go through and read several of the articles listed on this Google search:
I still don't see a huge issue unless you pay the money out and then he reverses the wire or something else happens. If you are working as an Accounts Receivable for the construction company then that opens up other issues but if it is just a matter of you acting as his payroll agent nothing changes from what I said above, other than you're not dealing with cash. You would probably want the money wired into an account owned by the construction company and then you write the checks from that account, otherwise you are opening yourself up to potential issues that will require explanations later.
Can you rephrase your question? Also, I need to ask you to consider issuing your rating on the initial answers to the questions before the question times out.
Even after issuing the rating the rating you can come back for follow ups if you have them. Issuing the rating just ensures that 1) I receive credit and 2) the question doesn't time out and close.