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Taxes On Wages of Undocumented Workers

I've never quite understood this. Was listening to Ed Schultz and a guy called in who had been in the U.S. for 17 years as an undocumented worker. He has worked for the same employer for almost the entire time. He says taxes are withheld from his paychecks, including Social Security and Medicare taxes.

If a worker is undocumented and has never been issued a Social Security number, where do the taxes that are collected from him go? If the social security number he is using is a phoney one, wouldn't there be a red flag on it and get tracked down? If the SS# was stolen from someone else, it also seems likely that a red flag would appear somewhere.

Anyone know?

by Anonymousreply 2001/28/2013

Probably into some government slush fund.

by Anonymousreply 101/28/2013

They can get a tax id number, taxes are withheld but never refunded.

by Anonymousreply 201/28/2013

The social security numbers they use are usually real.

You only find out somebody has been using your social security number if you have to file for unemployment. They force you to visit a Social Security office to fill out an affidavit.

Some chick named Rosa used mine for three years before my position was out-sourced to the Isle of Wight.

by Anonymousreply 301/28/2013

I don't see how you would not know if someone else was using your social security number. The info sent to the IRS would not match what you are reporting when you file taxes.

by Anonymousreply 401/28/2013

It's a well known fact that the immigrants with false social security numbers are paying into a system and will never receive anything. As soon as the false SS is flagged, the worker is asked for the correct number, they usually just flee for fear of deportation.

by Anonymousreply 501/28/2013

Someone stole my cousin's socail and used it to work.

He didn't report it because he owed the IRS money and I guess the money they took from illegal working covered 75% of it.

I'm sure 75% of the warehouse workers in Ontario,ca are illegal.

Atleast they were when I was temping around they own warehousing out here.

Osha is a joke.

by Anonymousreply 601/28/2013

SS finds out in no time. This has been my mother's job for 20 years. What this guy is saying is completely false. Tons of people on the pro-undocumented worker side always say it. It's just not true. Take it from someone who knows.

by Anonymousreply 701/28/2013

It's part of the dirty secret why there has been no move to legalize these workers since the 1980s. The pay in far more than they will ever get back at the federal level, while taking services at the state level. Since the Feds control immigration, you have the situation were in now.

by Anonymousreply 801/28/2013

Another possibility, particularly in small business or domestic worker situations, is that the employer is withholding taxes from the worker but never reporting or turning in anything. It wouldn't matter then if the SSN is fake or not and the worker, being undocumented, isn't going to challenge the supposed withholding.

by Anonymousreply 901/28/2013

It's true, millions go into the tax system from false numbers.

by Anonymousreply 1001/28/2013

A tax ID number is given to the undocumented worker. It's against the law to report an illegal and usually the employer has the form and concurrently wants to hire the worker. Taxes are paid into the system and the worker is allowed to file a tax return just like any citizen. Supposedly the worker pays into the system with the assumption that the illegal is working towards citizenship status. So when retiring in 30 to 40 years they can get social security benefits. The issue lies in most illegals do not want to give up citizenship of former country. The only issue lies in the tax return. Usually undocumented aliens have dependents that unbalance the tax return. For instance, let's say an alien reports 20k in income. His tax obligation would be 5000 dollars. Now the illegal has 5 dependents. Each worth a simplified amount of 1900 dollars. After a simple tax return that worker will get $9400 when he only paid less than those 5000. The government looks at those dependents as future contributors to our economy. Since the alien is working poor, no audit is necessary. Is it wrong? No because in twenty years those dependents will contribute 3X into the system that the father did. Even though people will says its unfair, it's part of the plan to have a workforce for the future.

by Anonymousreply 1101/28/2013

R11, you're full of shit. I doubt you've ever laid eyes on an I-9 form.

by Anonymousreply 1201/28/2013

[quote]It's part of the dirty secret why there has been no move to legalize these workers since the 1980s. The pay in far more than they will ever get back at the federal level, while taking services at the state level.

Because we all know those state services have no federal funding, and the federal government is a well oiled money making machine which makes decisions on its own volition.

by Anonymousreply 1301/28/2013

Many Illegal immigrants pay taxes and will not receive a penny in benefits.

In 2009, the last year for which figures are available, employers reported wages of $72.8 billion for 7.7 million workers who could not be matched to legal Social Security numbers

by Anonymousreply 1401/28/2013

R14, a typo in any submission could lead to not being able to match up SSNs. One company I worked for had a high turnover rate. It wasn't uncommon for a notice to come back about SSN errors that we couldn't correct because the employee had already moved on.

by Anonymousreply 1501/28/2013

Under previous requirements anyone here on a Visa or Green Card was required to register at the Post Office in January. By 1988 the government's computer system was overwhelmed and could not handle the volume, so the program was abandoned. At that point more illegals were able to get work.

by Anonymousreply 1601/28/2013

When a friend retired and applied for SS there was no record of his contribution for almost ten years.

His employer was applying contributions a number one digit off from his. My friend never looked at his paycheck. It took SS six months to straighen out the problem.

by Anonymousreply 1701/28/2013

Economic impact of illegal immigrants in the United States

by Anonymousreply 2001/28/2013
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