>>512909784
They mostly don't. I have no hard numbers, just anecdotal evidence but I'd say no more than 15% of illegals remit payments with an ITIN. I know for sure some do, but it's usually the ones who run the business or get paid a lot. The ones making $30-$40 per hour for labor only, do not partly because they have no expenses to deduct.
Source: Accountant for over a decade. Public and industry. Kept books and filed state and federal tax for a lot of contractors/builders/developers/landscaping outfits (even done manual labor in the trades myself). The way it usually goes is business owners pay them in cash as "day labor". When day labor expense gets too high, CPAs usually won't file so business owners shop for one who will. And of course there's the whole identity theft scam where they work for a while as an employee, but have $0 withheld and leave the real person unaware of the scam left holding the bag when they go to file with the IRS the following March or April.
States and federal tax revenue departments cross reference with each other, so they know but some states are fine with it. When illegals are given driver licenses or id cards by states they can then cash a check at payday loan check cashing places for a % of the entire check but no SS or ITIN required unlike at a regular bank.