To summarize: only payments to verified employees and independent contractors would count as a deductible business expense. Hire an illegal and you can’t count it as a legitimate business expense.
I agree with you but have a couple questions for you or anyone with some better understanding than I. I own a construction company. I hire sub contractors in the course of business. I see a great many sub contractors operating as a corporation these days. How do you e verify an s corp? How could illegal immigrants own one? I have suspicions.