Nashville, TN asked in Employment Law and Tax Law for Tennessee

Q: I just found out that one of my 1099 workers is an illegal immigrant and doesn’t have a ssn,EIN Do I need to fire them?

It’s tax time, which is how we found out the person was illegal. Can we pay the persons taxes and be fine? Or do we need to let the person go?

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1 Lawyer Answer
James L. Arrasmith
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Answered

A: Discovering that a worker does not have a Social Security Number (SSN) or Employer Identification Number (EIN) and is not authorized to work in the United States puts you in a challenging position. Under U.S. employment law, employers are required to ensure their employees are eligible to work in the U.S. This includes individuals hired as independent contractors.

If a worker is found to be unauthorized, continuing to employ them could result in legal consequences for your business, including penalties from immigration and tax authorities. Therefore, it's not a matter of simply paying the person's taxes to resolve the issue. Employers are not allowed to knowingly employ unauthorized workers.

The appropriate step would be to discontinue employing the individual. It's also advisable to review your hiring practices to ensure all employees have the required documentation to work legally in the United States.

Given the complexities surrounding employment and immigration law, you might find it beneficial to consult with an attorney. They can offer guidance specific to your situation and help ensure that your business remains in compliance with federal and state laws.

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