Infosys to pay nearly Rs 5.6 crore to settle worker misclassification, tax fraud charges

Infosys, one of India’s top IT majors, has agreed to pay Rs 5.6 crore to settle allegations of misclassification of foreign workers and tax fraud, officials announced on Tuesday.

“Infosys will pay California $800,000 (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.