Understanding the shift from F-1 student status to H-1B worker status is crucial and it has various components that can be complex. But don’t worry—I’m breaking them down in a way that makes it easy to understand.
What’s the F-1 to H-1B Transition?
First, let’s clarify what these visas are. The F-1 visa allows international students to study in the U.S. Once they graduate, they often work in the U.S. under something called Optional Practical Training (OPT), which is still part of their F-1 status. But, to keep working in the U.S. long-term, many students need to switch to an H-1B visa, which is for skilled workers in specialty jobs.
This transition usually happens around October 1st each year, when new cap subject H-1B visas become active. But how does this change actually happen, and what do employers and employees need to know?
Employers’ Key Responsibilities
When an employee switches from F-1 to H-1B status, employers’ have various key responsibilities.
The first step is updating the employee’s I-9 form, which is used to verify their work authorization. Employers also need to make sure they’re paying the correct wage. The H-1B visa requires employers to pay a certain minimum salary, known as the prevailing wage, which is based on the job and location. This might be different from what the employee was earning under their F-1 OPT status, so it’s important to double-check.
Finally, employers must maintain a file called the Public Access File (PAF), which includes important documents like the Labor Condition Application (LCA). This file needs to be available for inspection if the Department of Labor asks for it.
Payroll and Tax Changes
One big change that comes with the H-1B visa is how employee’s tax deductions are handled. While on an F-1 visa, students might have been exempt from some taxes, like Social Security and Medicare (known as FICA taxes). But once they’re on an H-1B visa, those taxes usually apply. Employers need to adjust the payroll to reflect these changes and make sure they’re withholding the correct amounts.
Employers should consult with payroll specialists or accountants to ensure this is done correctly.
Travel Considerations
As of October 1st, employees who have transitioned to H-1B status must plan carefully for any international travel. They can no longer use the F-1 visa in their passport to re-enter the U.S. Instead, they must obtain an H-1B visa stamp from a U.S. consulate abroad before returning.
It’s crucial to encourage employees to be proactive about this process and consider potential risks and delays involved. Delays at U.S. consulates and unpredictable conditions in other countries can impact visa processing times, potentially delaying their return to the U.S.
Encourage your employees to: plan ahead and schedule visa stamping appointments well in advance and avoid unnecessary international travel during this transition period.
Making this Transition Easy
The transition from F-1 to H-1B can seem overwhelming, but with our guidance and support, it doesn’t have to be. Our focus is to make this transition easy, so you can focus on what matters most —your life, career and business.