How do undocumented workers in the U.S. get into the system, such as Medicare and other public benefits?

 

How do undocumented workers in the U.S. get into the system, such as Medicare and other public benefits?

 How do undocumented workers in the U.S. get into the system, such as Medicare and other public benefits? How is this claim possible?

 Undocumented workers contribute money to the system primarily through taxes—even though they are generally ineligible for most federal benefits. Here’s how:

• Payroll Taxes (Social Security & Medicare) – Many undocumented workers use fake or borrowed Social Security numbers to get jobs. Their employers withhold FICA taxes (Social Security and Medicare) from their paychecks, just like for legal workers. However, since they don’t have valid SSNs, they will never be able to claim Social Security or Medicare benefits. The Social Security Administration (SSA) has a special Earnings Suspense File (ESF) where unmatchable contributions go—amounting to billions of dollars in unclaimed Social Security contributions.
• ITIN Tax Payments – Some undocumented workers file income taxes using an Individual Taxpayer Identification Number (ITIN), a number issued by the IRS for those who can’t get a Social Security number. They still pay federal, state, and local taxes, including income tax, even though they receive limited or no benefits.
• Sales and Excise Taxes – Every time they buy goods or services, undocumented workers pay sales taxes, just like everyone else. This contributes to state and local revenue.
• Property Taxes (Directly or Indirectly) – If they own a home, they pay property taxes. Even if they rent, their landlords use part of their rent to pay property taxes, which fund schools, roads, and local services.
• Unemployment and Workers’ Compensation Contributions – If their employer follows the law, they also pay into unemployment insurance and workers’ compensation programs, even though most states bar undocumented workers from collecting unemployment benefits.

In short, undocumented workers contribute billions of dollars annually to Social S