Guide to Global Payroll Management - 2020 - 10-7

Types of Visas

SSNS In 2004, the Social Security Administration (SSA) revised the rules for
assigning social security numbers (SSNs) to F-1 visa holders. Like all other
applicants, F-1 visa holders must provide SSA with evidence of age, identity,
immigration status, and work authorization. SSA also requires an employment authorization document (EAD) issued by the Department of Homeland
Security (DHS) or a SEVIS (Student and Exchange Visitor Information
System) Form I-20 (Certificate of Eligibility for Nonimmigrant (F-1) Student
Status) completed and signed by a designated school official authorizing curricular practical training before an SSN is assigned. This rule only applies to
F-1 students looking for on-campus work.
TAX EXEMPTION Compensation paid to F-1 visa holders is exempt from
social security, Medicare, and federal unemployment taxes (see Chapter 3).
Also, days spent in the U.S. under an F-1 visa do not count when determining residency under the substantial presence test, which is used to determine
an alien's resident/nonresident status for U.S. income tax purposes (see page
1-2).

H-1B, Specialty occupations
This visa is open to college-educated or experienced professionals and lasts for three
years, with one-year extensions available (maximum six year duration, with some exceptions). An H-1B visa can be given where the occupation requires highly specialized
knowledge and at least a bachelor's degree (valid for no more than three years). If state
licensing is required for the occupation, the alien must have or be eligible to receive the
required license. This visa is also issued to prominent fashion models (H-1B3 - valid up
to six years) and to aliens working on certain government projects administered by the
Department of Defense (H-1B2 - valid up to five years). H-1B visa holders can only work
for the sponsoring employer, but that employer may place the H-1B worker on the worksite
of another employer if certain Department of Labor rules are followed.
Since May 26, 2015, certain H-4 dependent spouses of H-1B nonimmigrants can file
Form I-765, Application for Employment Authorization, as long as the H-1B nonimmigrant
has already started the process of seeking employment-based lawful permanent resident
status. While the current administration has made known its intention to eliminate the H-4
visa program, that step has not been taken as of early 2020.
Before an H-1B visa will be issued, the Department of Labor must approve the employer's attestation in a Labor Condition Application (LCA) that it will pay the alien the higher
of the employer's regular wage rate or the prevailing wage rate in the area, and that
the alien's employment will not adversely affect the working conditions of other similarly
employed workers in the area. The Immigration and Nationality Act sets the total number of
aliens who may be issued H-1B visas during the fiscal year (65,000). This cap is reduced
10-7

Guide to Global Payroll Management - 2020

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