Importing foreign labor can be a great source of talent for your company, but it also comes at a price. You may be hiring staff on H-1B workers’ rights or permanent immigration visas of foreigners, and these costs can add up quickly. It costs more than $4,000 on average to recruit an employee, and even more when immigration sponsorship is involved, the Society for Human Resource Management says. This guide is going to break down the sponsoring fees of foreign workers for temporary visas or immigrant visas and let you know who has to foot the bill.
Visa Fees: What You Should Know
Nonimmigrant (Temporary) Visa Costs
If the employer is looking to hire a foreign worker on a nonimmigrant visa (such as the H-1B), then they should consider some important expenses:
- Fees: First of all there is the cost of hiring an immigration attorney to file the petition. They charge anywhere from $2,000 to $5,000 depending on the case. It’s very important to have immigration lawyers assist you with all the visa procedures and documents that can sometimes be complex.
- Filing Fees: U.S. non-immigrant petitions incur different processing fees from Citizenship and Immigration Services (USCIS). There’s an average filing fee for the H-1B visa, which is $780, plus there’s a $500 fraud prevention fee. For employers with many H-1B employees, the charges could be up to $4,000-$4,500.
- Premium Processing: For employers that would like their H-1B petition to be processed faster, they can choose premium processing ($2,805). This service expedites but isn’t a 100% guarantee of approval.
- ACWIA Fee: H-1B employer also must submit an American Competitiveness and Workforce Improvement Act (ACWIA) fee that varies by company size between $750 and $1,500.
- Visa Renewal Fees: If the H-1B worker has to renew his/her visa, legal and filing fees are added.
Immigrant (Permanent) Visa Costs
Permanent hire of foreigners comes at a cost — in the form of legal and administrative charges:
- Cost of Law: Immigrant applications — especially those from workers in need of permanent residence (green card) — are more complex and can cost $5,000 to $15,000 or more, depending on the case.
- Labor Certification: PERM labor certification, the necessary document for the majority of permanent work permits, can be a $3,000 plus expenditure on advertising and hiring.
- I-140 Filing Fee: The I-140 petition (I-140 for immigrant workers) fee is $715.
- I-485 Adjustment of Status Fee: If the worker is already a U.S. citizen, the I-485 for adjustment to the permanent resident will be $1,440, including a biometrics fee.
- Consular Processing Fees: If the foreign worker isn’t in the U.S., there are consular processing fees including DS-260 application fee and medical exam fees.
- Premium Processing of Immigrant Visas: Some employers, too, may purchase premium processing of I-140 petitions for $2,805 to get it faster (although, again, it’s not a guarantee).
Who Pays for Immigration Fees?
Paying the immigration fee varies and it’s very important to know about these variations if you want to stay on the right side of the U.S. immigration system. : So here’s who typically pays for what:
Nonimmigrant (Temporary) Visa Fees
- Fees on the Employer: Fees like the fraud prevention fee, ACWIA fee, and premium processing fee will always be on the employer’s side.
- Fees to be paid by employee: A charge such as the base filing fee on Form I-129 can be paid by the employer or employee, depending on the circumstances. Negotiable as well are lawyer fees to draft the petition.
Please note: You must also be cautious not to deduct employee’s wages from the amount of prevailing wage required to pay for some of these fees because it will make you incur legal fees.
Immigrant (Permanent) Visa Fees
- Employer Contribution: All employer contributions to PERM labor certification will be payable by the employer.
- Co-Pay: Fees for the I-140 and I-485 forms can be paid in part (without penalty) by both employer and employee.
- Consular Processing Fees: These are paid for the DS-260 application and medical exam on both sides.
Sponsoring Foreign Workers
It is expensive to hire foreign labor but often worth it. Sponsoring highly talented international talent will enable companies to hire more skilled candidates with the right qualifications to fill important roles and accelerate business. But the fact that it costs — and who pays for it — is the key to visa approval and regulation.
Employers who steward these financial risks and work with top immigration lawyers are able to not only comply with the law but also bring top talent from around the world. The initial investment may be steep, but in the long term, foreign workers – particularly those who have specialisms that are in demand – are usually well worth the money.
