Spreading earnings across multiple fake identities within the course of a year can result in each of those identities earning below the poverty line and each of those identities will then be eligible for the Earned Income Tax Credit. Don't know how widespread this practice is, but I often read about raids where the illegal employees return a few days after the raid with new identities.
If I were the payroll person who had the same person appear with whole new identity, I would tell my boss to stop such practices. If they would refuse, I would quit/ report them to the IRS, and ICE in that order.
I would have ulcers within a week if I had to stay and watch that happening under my nose with forms I was required to sign to various state & Federal agencies, not to mention workmen's comp insurance reports.
My reputation means more to me than that kind of behavior from a boss.
Good point. It does depend on how widespread the practice is. If it is widespread, it could have a considerable impact.