Every one talk about the immigration problem but how do employers get away with the labor expense account?

I AM GREAT AT MATH. TOOK YEARS OF ACCOUNTING IN COLLEGE. IN THE EXPENSE ACCOUNT YOU HAVE PAYROLL.RIGHT.NOW IN PAYROLL ACCOUNT YOU HAVE TO HAVE NAMES AND PAY SOCIAL SECURITY AND OTHER TAXES. RIGHT. SO HOW DO EMPLOYER GET AWAY EXPENSING ALL THIS MONEY ON PAYROLL ON ILLEGAL IMMIGRANTS. FEDRAL LAW STATES THAT ANY ONE HIRING AN ILLEGAL IMMIGRANT IS SUBJECT TO A 1000 DOLLAR FINE PER IMMIGRANT. THE EVIDENCE MUST BE ON THE PAPER TRAIL NOW NO EMPLOYER IN THE U.S. HAS EVER BEEN FINED . DOES THAT MAKE ANY SENCE. HOW CAN YOU EXPENSE THIS OUT ON 50 EMPLOYEES. ITS IMPOSSIABLE UNLESS SOME ONE IS LOOKING THE OTHER WAY

Easy. The illegal immigrant gives a false social security number, and the payments are made on that account.

There's a Federal law that authorizes the SSA to send "enforcement letters" to an employer who has employees on his books whose names don't match their social security numbers. An employer who gets one of these letters has 90 days to clear it up or fire the employee, or he'll be fined.

BUT.... since the Democrats took control of Congress, they have prohibited the SSA from sending out any of these letters, saying it might make employers reluctant to hire workers with accents, or with Hispanic names, in case they have to go through the hassle of verifying the SSN.

It's not true to say no employers have been fined, though. There have been MANY employers fined. There were some huge cases two years ago of big meat packing companies being fined tens of thousands of dollars.

Richard

OK, first stop shouting and turn off the caps lock.

You may be great at math and you are generally right about accounting principles.

I don't know if you are right that "no one has ever been fined" but let's give you the benefit of the doubt on that.

But.., put a little creativity into identifying the weak points of the system you described, and if people are incented to exploit those weak points.

Part of being great (your word!) at math means being able to do proof by induction (I was a math major too :)

So if I propose that there are weak points and incentives, can you work backward to the starting point from there?