|
USCIS HAS REACHED H-2B CAP FOR 2009
U.S. Citizenship and Immigration Services (USCIS) announced on January 8th that it had received a sufficient number of petitions to reach the congressionally mandated H-2B cap for 2009. January 7th, 2008 was the final receipt date for new H-2B worker petitions requesting employment start dates prior to October 1st, 2009. USCIS will reject petitions for new H-2B workers seeking employment start dates prior to October 1, 2009 that arrive after January, 7th, 2009. Read full text of the USCIS announcement.
American employers may still arrange for foreign workers through Seasonal Work/Travel USA Program. Unlike with H2B Program, there is no charge for the service. Moreover, the participants of the Program are not subjects to Medicare, Social Security or Unemployment taxes. These savings account for up to seven percent of payroll. The approval rate of J-1 visitors is very high and the application for recruitment is simple:
Application Process:
1. You tell us briefly about your business and your requirements. We ask that you indicate all your preferences and the dates of employment. You may find it helpful to use a special Estimates form or simply give us a call now at 732-681-2333.
2. We select appropriate candidates and send you several resumes for your approval.
3. We take care of all the required paperwork and keep you informed on the arrival dates.
Tax Savings:
American Employers can legally save 7.79% off their total payroll expenses simply by hiring J1 students. As any employees, foreign students are required to pay Federal, State and local taxes, but they are exempt from paying Medicare, Social Security or Federal Unemployment tax. Regularly, the employers match some of the taxes, contributing a sum equal to 6.2% of the employee's wages towards Social Security tax, 1.45% towards Medicare tax and up to 6.2% towards Federal Unemployment tax. Since J1 students pay zero Social Security, zero Medicare and zero Federal Unemployment, employers pay nothing to match these taxes, which account for at least 7.79% of their total payroll expenses (or 8.45% of the total employees' salaries).
In some instances, employers can save even more than 7.79% of their payroll expenses. Generally, Federal Unemployment tax rate is 6.2%, but employers are allowed to take a credit of up to 5.4% for their State Unemployment tax. If your State rate is less than 5.4%, your maximum credit for Federal Unemployment tax will decrease thus increasing total savings from hiring J1 exchange students.
For more information, please refer to IRS Employers Tax Guide Publication 5.15 or your state's taxation and revenue department.
How much should foreign workers be paid?
We recommend paying the prevailing wage. Foreign workers should be paid the same amounts as their American counterparts. Better wages tend to increase mutual satisfaction and productivity of the workers. Employers hiring international workers must comply with both state and federal minimum wage laws.
Foreign workers must be paid at least the greater of state and federal minimum wages. Please note that according to Fair Labor Standards Act (FLSA) of the US Department of Labor the federal wage is $6.55 per hour effective July 24, 2008; and $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws.
For more information please refer to the US Department of Labor web site.
|
|
