A Note About Hiring International Students

This page is designed to answer questions employers have about hiring international students; it is a summary of an original document released by NAFSA.

Obtaining authorization for international students to work in the U.S. is not as difficult as many employers think. Most international students are in the U.S. on non-immigrant visas (F-1 & J-1), and these students are eligible to accept employment in the U.S. under certain conditions.

Practical training
Minimal paperwork for the employer
Continuing employment after the practical training period
Taxes
Frequently asked questions

Practical training

Practical training is a legal means by which an F-1 students can obtain employment in areas related to their field of study. Usually, students must have completed an academic year (nine months) on an F-1 visa and must maintain legal F-1 status to be approved for practical training. There are two types of practical training: Curricular Practical Training (CPT), and Optional Practical Training (OPT). Read about them here.

Minimal paperwork for the employer

Fortunately for the employer, there is very little paperwork involved in hiring F-1 students. All paperwork is handled by the student, the school, and the INS. For CPT, the students will have the authorization on the back of their I-20 form. Those who opt to use their OPT time will have an INS-issued EAD.

Continuing employment after the practical training period

Federal regulations require the employment be terminated when the authorization expires. However, students who are on F-1 visa are eligible to continue their employment if they are approved for a change of visa status - usually to H-1B visa. Students must have completed a minimum of a Bachelor's degree in order to qualify for H-1B status.

Individuals with an H-1B visa may work in the US for a period of six years with the employer that petitioned for them; should they change employers, a new H-1B visa petition must be made to the INS. As soon as students receive a job offer that is likely to extend beyond the 12 months of OPT, they should petition for an H-1B visa.

Taxes

Unless exempted by a tax treaty, F-1 students earning income through any practical training are subject to applicable federal, state, and other local income taxes. Information on tax treaties may be found in IRS Publication 519, US Tax Guide for Aliens, and 901, US Tax Treaties. Generally, F-1 students are exempted from Medicare and social security requirements. However, if the student is considered a "resident alien," then Medicare and social security taxes apply. For more details on this subject please download the original NAFSA PDF file or contact the Superintendent of Documents' website.

Frequently asked questions

Isn't it illegal to hire international students because they do not have a green card?
No. Federal regulations permit the employment of international students within certain limits. The F-1 visa allows the students to work in a field related to their study, also known as practical training.

Even if it is legal to hire international students, isn't it expensive with lots of paperwork?
No. The only cost to hire an international student is the time and effort of interviewing the candidate. The International Students Office, along with the student, handle all the paperwork required to secure an authorization. In fact, a company might save more by hiring an international student since most of them are exempt from social security taxes and Medicare requirements.

How long can an international student work in the U.S. with a student visa?
F-1 students are eligible for curricular practical training during the time of their study, and a total of 12 months of full-time optional practical training, either before they graduate, following graduation, or a combination of the two. However, if students work full-time for one year under their curricular practical training, they would have forfeited their optional practical training time.

Don't international students need work authorization before I can hire them?
No. International students need authorization before they begin work, but not before they are offered a job. Many F-1 student will be in the process of obtaining approval as they interview for a potential employer. Students can give employers an estimate of when they think they will receive authorization.

What does the work authorization look like?
For optional practical training, students receive an Employment Authorization Document from the INS, a small photo identity card that indicates the dates for which the student is permitted to work. For curricular practical training, students receive authorization from their schools - not the INS - on the back of their I-20 document.

What if I want to employ an international student after their practical training is over?
Plan ahead. An employer can petition to change the status of their employee from F-1 to H-1B, or "specialty occupation." This change of status will allow these students to work for a total of six years for the employer who petitioned for them. The H-1B application is sent to the INS, and is pretty straight forward, however, the job must meet two requirements: the salary must meet the prevailing wage as defined by the Department of Labor and a bachelor's degree is normally the minimum requirement for the position.

Doesn't an employer need to prove that the international student is not taking the position from a qualified American?
No. This does not apply for hiring students with F-1, J-1, or H-1B visas. The only time the employer has to provide such a proof is when they are sponsoring a student for either permanent employment or permanent residence (Green Card status).

Can I hire international students as volunteers?
Yes. If the employment involves no form of compensation then students do not have to do any kind of paperwork with the INS or their institutions. However, if ANY type of compensation is provided, then the employment must be filed under a branch of practical training.

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Macalester College · 1600 Grand Avenue, St. Paul, MN 55105 USA · 651-696-6000
Comments and questions to internship@macalester.edu