Human Resources

What is the best way to hire an international employee as an S Corp?

One of my clients wants to hire an individual as an employee from overseas but she has no clue how to deal with this and what formalities and things are required?
Can anyone guide me on this?

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Answer

  1. 29 Answers

    First you will want your client to apply for certification from the United States Department of Labor. The Department of Labor seeks to protect the rights and work opportunities of U.S. citizens, so you need to prove to them that there are insufficient qualified U.S. workers who are willing to perform your job at the prevailing wage. To do so, your client will need to complete the following steps:

    1) Provide evidence for the need to hire a foreign worker to fill your vacancy.
    2) Show that the vacancy meets the criteria for the selected foreign labor certification program.
    3) Complete and sign the appropriate ETA form.
    4) Prove that you can pay the candidate at least the prevailing wage.
    5) Mail the completed form and all the attachments to the designated office.

    Next your client will need to apply for a work visa from U.S. Citizenship and Immigration Services. If the candidate is already in the U.S., your client can use Form 1-9 to verify his or her work authorization. This form can be compared with the E-Verify federal database to check the candidate’s work authorization. If the candidate is not in the U.S., your client will have to sponsor a visa, which can include considerable time and costs. This process can take weeks to months to complete and includes the risk of visa denial. Your client needs to consider how they will bring a foreign employee to the U.S. and how to keep him or her in the country and remain compliant with the law.

    Separately, the foreign worker will need to apply for a social security number with the Social Security Administration which they will need to provide to your client, their employer. (Please note, foreign workers are subject to payroll taxes the same as U.S. citizens are.)

    Foreign-based employees working outside the U.S. will need to complete Form W-8 BEN. All employees will need to complete a Form W-2 so that the ICE can check their Form I-9. If a discrepancy is found between government records and the employee’s information, a no-match letter will be sent to the employer. Do not fire your foreign worker if your client receives a no-match letter or they could be sued for discrimination. Read the letter carefully and follow the instructions provided.

    To get this process started, here are some helpful links:
    Department of Labor: https://www.dol.gov/general/topic/hiring/foreign
    Foreign Labor Certification: https://www.dol.gov/agencies/eta/foreign-labor
    Documents & Forms: https://www.dol.gov/agencies/eta/foreign-labor/forms

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