May a business that employs undocumented aliens deduct the payroll costs as an ordinary and necessary expense?
397657
No. Employing undocumented aliens is illegal, so if you deduct those costs it's called tax fraud.
210271
The only legal fees you can deduct from your taxes are fees pertaining to taxes and legal fees for your business if you have one. So the answer is no.
348751
I bet there are a lot of illegal aliens now using it to be able to work, the reason is simple, when an employer try to pay taxes based on the income this people make the IRS will accept the money , I think they came up with this when the goberment did not allow people to obtain a social security number, many year ago you were allowed to obtain one but it was not valid for employment,. yes it is true that this number is meant for investor or people who can not get a social security card but believe me I know people who use it the the way I describe above.
171942
if you own your own business almost everything is a deduction but if you work in a hospital you can deduct the cost of your uniforms. you would report it on the schedule a along with your other itimized deductions. other than that you could call the irs or go to your local tax office to get the full details that relate to your particular situatuion.
202584
None. If you are an independent contractor, you should provide the contract for the other party to sign if they want your services. This contract should stipulate what services are being provided and the schedule of payment to you. When February rolls around the next year, the other party provides you with a 1099 form as a statement of what you were paid so that you can report the earnings to your accountant. If the amount of money was less than $500, then the other party does not have to provide a 1099. As an independent contractor, you are responsible for your expenses, which are a business deduction. Keep records diligently!
547921
I think it is wrong for any employer to hire any illegal immigrants to work, and if a major case of a serious disease goes epidemic because of meat handled by a sick illegal, that meat processing company is going to find out just how expensive it is to hire illegals.
735835
Mexican foreign nationals who work in this country ARE paying for Social Security and other "taxes".  The American employers who criminally invite and hire undocumented foreign nationals withhold those taxes and Social Security from their pay and keep it for themselves.
191259
The TOLL FREE number to report ILLEGAL aliens or those employing ILLEGAL aliens to ICE is: 866-347-2423 \n\nHow it works: \n\nYou are not required to provide your identity to ICE.  All that is necessary to request an investigation by ICE is mere suspicion of any activity by ILLEGAL aliens.  \n\nICE and the IRS are especially interested in "visiting" those businesses that employ ILLEGALS "off the books" to avoid the payment of payroll taxes.   \n\n\nSmall and large businesses are equally notorious in the hiring of ILLEGAL aliens to avoid paying fair wages to its workers and to criminally evade the collection and payment of payroll taxes.
463477
No for several reasons. One, any illegal immigrant (from Mexico or otherwise) takes advantage of United States infrastructure without paying taxes, so that' just plain not fair. Two, having people in the United States with no records is dangerous. Every natural born citizen or legal immigrant has records somewhere. Three, when illegal immigrants work, they get screwed because their work is illegal and employers take advantage of that. Putting restrictions on immigration would ensure that all Mexican immigrants get fair pay and work hours.
1127474
Well, you brought up a very common issue with respect to owners of corporations.  The IRS has a provision within the code that talks about 'reasonable compensation' - which means basically what it implies.  Typically, you see owners of corps paying themselves outrageous salaries and this provision puts a limit on that.  As far as underpaying owners, this provision acts in the same manner.  Therefore, if you were to be audited, the IRS would most likely rule that any distributions you may have taken are technically classified as salary, and thus, all related taxes including payroll taxes would be assessed.  So the easy way to answer your question is - NO, you do not need to pay payroll taxes if you have zero income.  BUT, the fact that you have 0 income is a flag in and of itself and you might be in line to get a letter from them inquiring about why you have no income.  From a technical standpoint, you should be paying yourself a 'reasonable comp' - which is arbitrary, but it should be in the ballpark of other taxpayers in the same business as yours.  Obviously, with a salary - you will then need to file your related payroll tax returns, etc, etc.
25550
Based on IRS publication 513, it appears that resident aliens working in the US are subject to income tax, but not social security tax.  However, I'd recommend a more  thorough look at the IRS website to be certain.
685592
It's kind of hard to tell what you're talking about.  Assuming that you're American and that you're talking about travel expenses, then it depends on whether this is a temporary or permanent job.  If this is a temporary job, then you could deduct mileage, meals, lodging, etc.  But if it's a permanent job, you can't deduct anything.\n\nAs the IRS says:\n"Travel expenses paid or incurred in connection with a temporary work assignment away from home are deductible. However, travel expenses paid in connection with an indefinite work assignment are not deductible. Any work assignment in excess of one year is considered indefinite. Also, you may not deduct travel expenses at a work location if it is realistically expected that you will work there for more than one year, whether or not you actually work there that long. If you realistically expect to work at a temporary location for less than one year, and the expectation changes so that at some point you realistically expect to work there for more than one year, travel expenses become nondeductible when your expectation changes."\n\nHope that helps.  Use the link below to get more details.
469046
The reason is that, they are considering both sides of the coin. Ilegal aliens work in restaurants (cooking, washing dishes, cleaning bathrooms, etc, for low wages). The truth is that employers don't want to hire U.S. Citizens because U.S. Citizens want more money. So, let's say that they hire U.S. Citizens for 50% more in they paycheck than Ilegal aliens. Than increase would be reflected in the price of the goods or services. Can you imagine drivers,cooks,construction laborers, janitors, plumbers etc?\nWe complain about the problem, but we don't want high prices on most products and services.\nThe politicians are evaluting the problem, but most likely they have to come with some kind of guest worker program, to help businesses succeed and not fail.\nOtherwise who is going to do those jobs for minimum wages?\nAnother thing is Taxes. Ilegals pay taxes for groceries, gasoline, insurance, utility bills, licence plates, etc.\nCan you imagine how much money those people generate to most States?. Believe or not Millions of dollars that help the economy of the United States.\nWe definitely want that problem solved without a high price.
332879
payroll is an accounting liability
1084773
You have explained this very nicely.  Savings that the employers reap by hiring illegals at far lower costs are not passed onto the consumers.  It is kept by the employers as higher profits.  Illegals are not causing our food to be cheaper.  This is a myth!
160655
No.  This is a no-brainer.  But don't take my word for it - call the IRS directly, they will actually tell you what the law allows.
871678
Good point.  I know of many cases where people have worked the heck out of illegal aliens for days and when pay day comes they report them to the cops or immigration to avoid paying them.  The employer is usually someone that hires them for handyman work and it never involves major companies.  Bottom line is that the illegal alien usually get returned to their country.  Also this mostly occurs in border communities.