US Employers Tackle Large Expenses Due to H-1B and L-1 Visas

The Department of Homeland Security of the United States proposed a new proposal requiring employers to pay the fees for the work visas of the prospective international employees they intend to hire. This rule would create another expense at the end of the employers. According to this proposal, employers who hire employees on an H-1B or L-1 visa must pay $4000 for the former and $4500 for the latter. The employers must bear the renewal fees for their employees’ visas. 

These changes are a part of the 9/11 Response and Biometric Entry-Exit Fee. At the time being, this only applies to the initial visa petitions and changes in employers. The 9/11 Response and Biometric Entry-Exit Fee was created to support many national security programs financially. Primarily, this initiative also funds and supports systems which track the entry and exit movements of immigrants within the borders of the United States. All non-US citizens are thus bound to comply with this mandate. 

This fee has been consolidated and approved under the Consolidated Appropriations Act of 2016. It holds relevance in the case of certain H-1B and L-1 visa holders who work in the US. 

What Reasons Have Caused This Change?

The changes in the Visa fee payment structures have been caused due to the following reasons, according to state officials: 

• The entry-exit system’s funding needs have recently increased due to the large number of immigrants in the country. Thus, these fee changes could help meet the financial needs required to support this entry-exit system so that it continues providing the same quality level to all. 

• Through these new changes, the government will ensure that these fees apply to everyone equally and uniformly through all types of petitions by different applicants. This ensures a system of fairness and equality in the US immigration system. 

• With more funding, the authorities will be able to access more resources, strengthening the security of these systems. It will improve and enhance the biometric entry and exit system and strengthen state security on all levels, which is very important for dealing with immigration of such a high volume. 

Current Fee Pattern for H-1B and L-1 Visas 

The system for paying visa fees for those on H-1B and L-1 visas is different. 

Only those employers have to pay the fees for the H-1B and L-1 visas who satisfy the following two conditions:

• Employers have 50 or over 50 employees in their company. 

• 50 per cent or over 50 per cent of these employees work in the US through an H-1B or L-1 visa and hold these visas, respectively.

 The fee for the H-1B visa is $4000, and the L-1 visa is $4500. 

Employers must meet both conditions to be eligible to pay the visa fees. If either one of the conditions are not met, then this does not apply to the employer. 

What Do These New Changes Indicate?

These new changes will alter the current fee structure to quite an extent. The newly proposed changes, if implemented, will result in the employers bearing the cost of the visa petition changes, too. 

These changes indicate that the employers will have to bear the $4000 for H-1B Visa and $4500 for L-1 Visa not only for the petition changes at the initial stage of this process but also to extend the employment periods of these visa holders in the US.

Conclusion 

These new visa changes will cost $4000 for each H-1B visa holder and $4500 for each L-1 visa holder in the US. If this policy is implemented, it will strongly increase the costs of those employers who heavily rely on people who hold H-1B and L-1 visas for work. This might be a financial burden for many of these employers, leading to a change in their approach and policies towards their recruitment processes and their dependence on H-1B and L-1 visa holders.

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