Paying sister and friend to help on rehab

[Tim Hertz]

Hello all,

I am doing a rehab and I have a sister and a friend I want to hire to help. They will make over $600, but this is more of an "under the table" cash deal. Can I claim $595 (avoiding 1099 minimum) and not claim the rest, or do I just pay them in cash and not claim any of this as an expense? 

Thank you!