How do large plants/ factories who hire large numbers of illegal immigrant workers get around all of the taxes and verification filings put in place to prevent such activities?


How do large plants/ factories who hire large numbers of illegal immigrant workers get around all of the taxes and verification filings put in place to prevent such activities?

In: Economics

Usually it’s the employees using stolen documents. They have legitimate documentation, but it’s for someone else. So long as they give the same name that’s on the SSC, eVerify come back good.

The illegal usually uses stolen ID, then PAYS income tax, like most everyone else. They don’t need to file, cause its not their card anyway. I love it when ignorant people thinks they get around paying taxes. There is a thing in our state (TN) that you as a company, go online and “check” the IDs, but most don’t, or didn’t in the past. Not sure now. though. I am old….lol

I would think they would be hired by a temp agency and then contracted out to those CO’s.

The company gets protect from the law. The agency get the contract and people get paid.

Don’t know if this will be removed or not but

This will go on just as it has as long as the worker, and not the employer, is penalized.

As far as I know, the owner of the plant in Mississippi, recently in the news, is suffering no penalty.

George W Bush’s immigration plan would have addressed this, but his own party shot it down.

Basically everyone who works pays payroll and/or income taxes, regardless of what your one relative says on Facebook. Employers do sometimes misclassify employees as independent contractors, which passes that burden over to the employees improperly – so sometimes the undocumented employee ends up paying more in taxes than they actually should, based on their income.

Most of the time it is one of the following happening:
1. Worker has stolen credentials. They are real, just not theirs and the employers dont care enough to prove it because the labor is cheap.

2. Still technically stolen credentials but; using a family members credentials. So you have john. John works at company A. His illegal cousin jack uses johns id when applying for a job at company B. Then johns OTHER illegal cousin, Paul, also uses Johns id to get a job at company C.
Its not illegal or unheard of for John to have 3 jobs so it does not set off any alarms in the IRS or at ICE. The only issue is that when John files his taxes he is going to owe unless they all set their w4 at 0’s.

3. Worker is paid under the table or technically hired as an outside contractor. I know of a few companies that have a false LLC business on the side that they pay for “temp” work and such. The LLC only has 1 official worker on their own books, which is the owner. The big company pays LLC for the worker, the LLC sends out a check to said worker. The LLc is the one that CAN be held liable but they list it on their pay out as a day laborer and can get around most tax laws. Can be pinned down if the law really wants to, but usually not worth it.
(I saw this in new mexico, where employers were fined heavily if they were caught)

You do not need a social security number to establish an LLC in the US. That LLC *can get* an EIN.

Undocumented residents will establish one LLC for their family, friends etc. The employer subcontracts legally to the LLC. They pay taxes but don’t have rights.

It’s a legal loophole that the government has (not accidentally) left in place.

business have to make only a “good faith” effort to ensure documents are valid. you can drive a cargo ship through that requirement. if it’s not a blatantly obvious fake, it’s good enough.

and the docs are easily available

so taxes and all that are being paid by the employer, just to someone else

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