Infosys, India’s reputed IT major, has consented to settle USD 800,000 (approximately INR 56 crore) to resolve allegations of misclassification of international workers and tax fraud, officials announced Tuesday.
Around 500 Infosys employees are working in the state Infosys sponsored B1 visas rather than H 1B visas.
The misclassification reflected in Infosys avoiding California payroll taxes for disability insurance, unemployment insurance and employment training taxes.
For H 1B visas employees are required to pay workers at the local prevailing wage, an official stated.
In the covenant, Infosys denied the allegations and asserted of no wrongdoings.