As I understand the ever confusing tax regulations a homeowner is not conducting a business that would require hiring a contractor on a continuing basis so does not have to file 1099s. However, the contractor is supposed to report any income and can deduct allowable expenses incurred in conducting his/her business whether a 1099 is filed or not.
As a homeowner you may be required to file a 1099 for household help---gardener, cleaning person, nanny, etc.---that works for you on a regular basis. I do not remember the income cut-off.
Always be cautious of "under the table" deals. All it takes is someone angry about something to get you in a fair amount of trouble. At least potentially. It is best to report income honestly. And when in doubt consult a tax professional.