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.
1. This bill states that businesses cannot deduct wages paid to unauthorized workers from their taxable income. 2. It defines wages to include all forms of payment, not just cash. 3. If a business uses the E-Verify program and confirms a worker's legal status, they can still deduct those wages. 4. The bill allows tax authorities to audit businesses for improper deductions related to unauthorized workers within six years. 5. It establishes a program for sharing information between government agencies to identify unauthorized workers.
Businesses that hire workers and employees without legal authorization.