How Many H-1B Visas Are Issued Each Year & How Are H-1B Holders Taxed?

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The H-1B visa program is controversial. Few people like it. Businesses say it’s too restrictive.

Labor organizations complain that it displaces U.S. workers and lowers their wages. Some politicians use it to appeal to their base with scant ability to fix the process to the benefit of all.

The following overview of the H-1B visa is accurate as of the publication date. Beware that the rules and internal business processes of the H-1B visa are complex.

Either could be changed by legislation, executive order, or internal process reviews.To know more details on h1b sponsorship visit Orphosys Corp.

For the latest rules, consult the Department of Labor, U.S. Citizenship and Immigration Services, or a legal firm specializing in immigration.

How many H-1B visas are issued each year?

At present, the U.S. limits the H-1B visa program to 65,000 qualifying foreign workers. However, 20,000 additional individuals are eligible to work under the H-1B advanced degree exemption.

These individuals must have a relevant graduate degree from a public or not-for-profit university located in the United States.

The school must be properly accredited by a formally recognized accrediting organization such as the Accrediting Council for Independent Colleges and Schools or the Accrediting Council for Continuing Education and Training.

For more information visit the U.S. Citizenship and Immigration Services (USCIS) website.

Additional visas are sometimes authorized under the H-1B program. Under the American Competitiveness in the Twenty-First Century Act of 2000, universities and research facilities are sometimes allowed to hire H-1B holders who are not counted in the limits above.

In addition, the USCIS states that individuals with H-1B visas working in the Commonwealth of the Northern Mariana Islands (CNMI) and Guam may not be counted in the H-1B cap. Since the rules can change frequently, consult the Department of Labor for the most recent updates.

How are H-1B holders taxed?

H-1B visa holders have to obtain an Individual Taxpayer Identification Number and pay U.S. taxes, Social Security, and Medicare. However, the rules can get very complicated depending on whether the H-1B visa holder is categorized as a resident alien or a non-resident alien.

At a summary level, the IRS uses the “substantial presence test” to classify each H-1B holder. Substantial presence is a function of the number of days an individual has spent in the U.S. during the current tax year along with the prior three taxes years.To know more information on h1b sponsorship requirements check Kmindia

Individuals who fall above the threshold are deemed resident aliens and are taxed on all income including non-U.S income. Individuals who fall below the threshold are considered non-resident aliens and are only taxed on U.S income.

There are a large number of rules and exemptions. H-1B holders should consult a tax specialist.

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