This bill prevents businesses from reducing their taxable income by claiming wages paid to unauthorized workers. It aims to clarify tax rules and improve enforcement against illegal employment practices.
If you run a business, you cannot deduct wages paid to unauthorized workers from your taxes.
Who this affects
Businesses · Workers · Employees
What changes is this bill making?
1This bill states that businesses cannot deduct wages paid to unauthorized workers from their taxable income.
2It defines wages to include all forms of payment, not just cash.
3If a business uses the E-Verify program and confirms a worker's legal status, they can still deduct those wages.
4The bill allows tax authorities to audit businesses for improper deductions related to unauthorized workers within six years.
5It establishes a program for sharing information between government agencies to identify unauthorized workers.
