Understanding H-1B Sponsorship Costs and Common Misconceptions

Introduction to H-1B Visa Sponsorship

The H-1B visa is a form of employment-based visa that allows U.S. employers to employ foreign workers in specialty occupations. One of the significant challenges associated with obtaining an H-1B visa is the sponsorship process, which can come with substantial financial costs. These costs are primarily borne by the employer, though candidates may need to provide some supporting documents or evidence as part of their application.

Common Expenses in H-1B Visa Sponsorship

The costs associated with an H-1B visa sponsorship can vary significantly depending on the consulting company and the specific circumstances of the case. Here is a breakdown of some common expenses and fees:

Filing Fees

USCIS (United States Citizenship and Immigration Services) imposes several filing fees on employers. Here are the current fees as of 2023:

Base filing fee: $460 ACWIA (American Competitiveness and Workforce Improvement Act) fee: $1500 (for larger companies) or $750 (for smaller companies) Fraud prevention and detection fee: $500 Premium processing fee: $2500 (application process takes 15 days)

Legal Fees

Many consulting companies hire immigration attorneys to handle the H-1B application process. Legal fees can range from $1500 to $5000 or more, depending on the complexity of the case. These fees are also typically paid by the employer.

Other Costs

Additional costs may include:

Labor condition application (LCA) costs Recruitment efforts Other administrative expenses

Based on these factors, the total cost for a consulting company to sponsor an H-1B visa can range from $3000 to $10000 or more. However, it is essential to note that the employer, not the candidate, is usually responsible for these costs.

Red Flags and Scam Warning Signs

It is crucial to be aware of common misconceptions and warning signs in the H-1B sponsorship process. Some consulting companies may try to mislead employers and candidates by charging fees for services that should be paid by the employer.

Consulting Company Fees

If a consulting company charges fees for filing an H-1B application, there is a significant risk involved. Employers must pay for all H-1B fees, including:

Registration fee: $10 Public Law fee: $4000 Basic filing fee: $460 USCIS Anti-fraud fee: $450 ACWAI fee: $1500 (for larger companies) or $750 (for smaller companies)

The only exceptions where the beneficiary can pay for fees are premium processing fees and visa fees for consular processing. Premium processing is an optional fee. It is against U.S. legal regulations if an employer or consultant tries to charge this fee to the employee or beneficiary.

Reporting Scam Consultants

It is vital to report any consultancy that tries to charge fees for H-1B filing to the appropriate authorities. If you encounter such a consultancy, report it on usa.gov. Recent experiences have highlighted instances where consultants like VISION IT USA Inc. have tried to charge registration and visa filing fees, leading to disputes and denying terms.

(For example, I encountered a consultancy company named VISION IT USA Inc. They were charging a registration/visa filing fee to process the H1B file. When I requested them to put the payment terms in the service contract, they immediately took the U-turn and went into denial mode.)

Conclusion

Understanding the H-1B sponsorship costs and being aware of common misconceptions and scam warning signs is crucial for both employers and candidates. By staying informed, you can ensure a smoother and more compliant H-1B application process.