Infosys to pay $800K to settle allegations

Infosys, India's top IT major, has agreed to pay $8,00,000 to settle allegations of misclassification of foreign workers and tax fraud, officials announced. Infosys will pay California $8,00,000 (nearly Rs 5.6 crore) to resolve allegations that between 2006 and 2017, approximately 500 Infosys employees were working in the State on Infosys-sponsored B-1 visas rather than H-1B visas, California Attorney General Xavier Becerra said.

This misclassification resulted in Infosys avoiding California payroll taxes such as the unemployment insurance, disability insurance, and employment training taxes. H-1B visas also require employers to pay workers at the local prevailing wage, an official statement said. 'Today's settlement shows that attempting to evade California law doesn't pay. Infosys brought in workers on the wrong visas in order to underpay them and avoid paying taxes. With this settlement, California has been made whole,' Becca said.