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
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)
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