The H-1B visa is a popular choice for U.S. employers hiring highly skilled foreign workers in specialized fields, such as technology, engineering, finance, and healthcare. However, the H-1B application process includes various fees and costs that employers must cover, including government fees and legal expenses. This guide breaks down the H-1B visa cost to employers, detailing each required fee and additional expenses associated with hiring and sponsoring an H-1B employee.
1. Overview of H-1B Visa Costs for Employers
Employers sponsoring an H-1B worker are responsible for covering most of the application fees set by the U.S. government. The total cost can vary depending on the size of the company, whether premium processing is required, and other factors.
Typical H-1B Visa Cost Range
- Government Fees: $1,710 to $7,110 (depending on factors like company size and filing preferences)
- Legal Fees: $1,500 to $4,000 (optional but recommended for complex cases)
- Other Costs: Includes costs for compliance, documentation, and additional services
The exact amount depends on the employer’s circumstances, size, and whether the visa application is subject to additional requirements.
2. Required Government Fees for the H-1B Visa
Employers must pay several mandatory fees when filing an H-1B petition on behalf of an employee. Here’s a breakdown of each required fee:
Base Filing Fee
- Amount: $460
- Purpose: Covers the basic Form I-129 Petition for a Nonimmigrant Worker.
- Who Pays: The employer must cover this fee and cannot pass it on to the employee.
ACWIA Fee (American Competitiveness and Workforce Improvement Act Fee)
- Amount:
- $750 for companies with 1 to 25 employees
- $1,500 for companies with more than 25 employees
- Purpose: Helps fund U.S. worker training programs.
- Who Pays: The employer must pay this fee, with few exceptions for certain nonprofit organizations and educational institutions.
Fraud Prevention and Detection Fee
- Amount: $500
- Purpose: Helps U.S. Citizenship and Immigration Services (USCIS) prevent fraud and abuse in the H-1B program.
- Who Pays: Paid by the employer with every initial H-1B petition and change of employer application.
Optional: Premium Processing Fee
- Amount: $2,500
- Purpose: Expedites processing, reducing the adjudication time to 15 calendar days.
- Who Pays: Either the employer or employee can pay this fee, although most employers cover it if faster processing is needed to meet business needs.
Public Law 114-113 Fee (for Large H-1B Employers)
- Amount: $4,000
- Purpose: Applies to employers with 50 or more employees if more than 50% are H-1B or L-1 workers.
- Who Pays: Only large H-1B-dependent companies are subject to this fee.
Fee Summary for H-1B Visa Applications
| Fee Type | Amount | Who Pays |
|---|---|---|
| Base Filing Fee | $460 | Employer |
| ACWIA Fee | $750 (small employers) / $1,500 (large employers) | Employer |
| Fraud Prevention and Detection Fee | $500 | Employer |
| Premium Processing Fee (Optional) | $2,500 | Employer or employee |
| Public Law 114-113 Fee | $4,000 (if applicable) | Large, H-1B-dependent employers |
Employers can expect to pay between $1,710 and $7,110 in government fees depending on company size, filing choices, and visa type.
3. Legal and Administrative Costs
Although not required, most employers hire immigration attorneys to handle H-1B applications due to the complexity of the process. Legal fees typically include consultation, document preparation, and ongoing communication with USCIS.
Typical Legal Fees
- Amount: $1,500 to $4,000 per application
- Purpose: Covers attorney services for preparing and filing the H-1B petition, responding to USCIS requests, and handling compliance issues.
- Who Pays: The employer usually covers legal fees as part of the sponsorship process.
Additionally, employers may incur administrative expenses related to maintaining compliance, such as:
- Labor Condition Application (LCA) Preparation: Required before filing Form I-129.
- Public Access File Maintenance: Employers must keep a public access file with certain information about the H-1B worker’s employment terms.
- Audit Costs: Employers may face audits to ensure compliance with wage and employment conditions.
While these costs vary, budget-conscious employers should consider legal and administrative expenses alongside mandatory fees.
4. Total H-1B Visa Cost for Employers
Considering all fees and possible additional costs, here’s an estimated range for the total H-1B sponsorship cost to employers:
| Cost Component | Estimated Amount |
|---|---|
| Government Fees | $1,710 to $7,110 |
| Legal Fees (optional but recommended) | $1,500 to $4,000 |
| Administrative and Compliance Costs | Variable |
| Total Estimated Cost | $3,210 to $11,110+ |
While costs vary, employers generally spend between $3,210 and $11,110 to sponsor an H-1B worker.
5. Additional Considerations for H-1B Employers
Beyond fees, there are additional factors and obligations that employers should keep in mind when sponsoring an H-1B worker:
H-1B Compliance Requirements
Employers must follow strict rules to maintain compliance with H-1B program regulations:
- Wage Requirements: Employers must pay H-1B workers the “prevailing wage” for the position to avoid underpaying foreign workers.
- Working Conditions: H-1B employees should have the same work conditions as similarly situated U.S. workers.
- Labor Condition Application (LCA): The LCA requires specific wage and working condition attestations, which must be maintained throughout the employee’s H-1B tenure.
Potential H-1B Extension and Renewal Costs
H-1B visas are valid for up to three years and can be renewed once for a total of six years. Employers must cover renewal fees and may need to reapply if the employee wishes to extend beyond the six-year limit under certain conditions (e.g., awaiting a green card).
Public Access File (PAF)
Employers are required to create and maintain a PAF for each H-1B employee, which includes the LCA, wage information, and other required documentation.
6. Frequently Asked Questions (FAQs)
1. Can the H-1B visa applicant pay the employer’s fees?
No, the employee cannot pay employer-required fees, such as the ACWIA fee or fraud detection fee. However, the employee can pay the optional premium processing fee if the employer agrees.
2. Are there any discounts or waivers for H-1B fees?
No, H-1B fees are fixed, with no waivers or discounts. Some small businesses qualify for the lower ACWIA fee.
3. Is premium processing required?
No, premium processing is optional. However, many employers choose it for faster processing, especially if there are business needs for a quick decision.
4. What are the penalties if an employer doesn’t comply with H-1B requirements?
Non-compliance can lead to penalties, including fines, debarment from the H-1B program, and other legal consequences.
5. Can an H-1B employee switch employers?
Yes, H-1B employees can switch employers. However, the new employer must file an H-1B transfer petition and pay all associated fees.
6. Does the employer cover H-1B extension fees?
Yes, if the employer wishes to continue employing the H-1B worker beyond the initial three years, they must cover the extension filing fees.