Employer Resources
Hiring International Professionals on an F-1 Visa: A Guide for Employers
International students on an F-1 visa are often young professionals looking to advance in their fields of study. They can bring valuable global perspectives and high-level skills to the workplace. F-1 student work authorization is regulated by the U.S. government and F-1 students can work legally under specific provisions, most commonly through Curricular Practical Training (CPT) and Optional Practical Training (OPT). This guide outlines key information on hiring F-1 students, obtaining CPT approval, and tax considerations for employers.
Understanding F-1 Student Work Authorization
F-1 visa holders are international students studying full-time in the U.S. They may be eligible to work in the U.S. during their studies through the Curricular Practical Training (CPT) program or after graduation via Optional Practical Training (OPT).
- CPT (Curricular Practical Training): A temporary authorization for work directly related to the student’s major and integral to their curriculum.
- OPT (Optional Practical Training): Authorized for post-graduation work and available for up to 12 months, or up to 36 months for STEM graduates.
What Is Curricular Practical Training (CPT)?
Curricular Practical Training (CPT) allows F-1 students to work in a job that is an integral part of their curriculum. CPT may be full-time (more than 20 hours per week) or part-time (20 hours or less), depending on the student’s program requirements and authorization. It is specific to each employer and approved by the student’s Designated School Official (DSO) based on USCIS regulations.
Eligibility for CPT
- The position must be directly related to the student’s major.
- The work must be an essential part of an established curriculum, often tied to a course or academic requirement.
- Approval must come from both the student’s DSO and the student’s academic department.
Department of Homeland Security: Study in the States Curricular Practical Training CPT
Benefits of Hiring International Students on an F-1 Visa
F-1 students bring unique global insights, multilingual skills, and specialized knowledge to the workplace. Hiring these students can enhance cultural diversity and support corporate innovation. The CPT program enables employers to tap into this talent pool while allowing students to gain practical experience in their fields.
How Employers Can Hire F-1’s through CPT
To hire an F-1 student through CPT, employers must work with the student and their institution to follow these steps:
Step 1: Offer a Position Related to the Student’s Major: The position must align with the student’s field of study and meet the specific academic requirements for CPT eligibility.
Step 2: Provide the Student with a Job Offer Letter or Cooperative Agreement with the University: The student’s DSO will use this information to assess CPT eligibility and complete the necessary documentation.
Step 3: Await CPT Authorization: The student’s DSO will authorize CPT by endorsing the student’s Form I-20, noting the job information and CPT details. No separate work authorization application is required for CPT, as approval is granted directly through the student’s institution.
USCIS Guide for F-1 Employment Types: How to Complete the I-9
Employer Tax Exemptions and Withholdings for F-1 Students
Employers should be aware of the following tax provisions when hiring F-1 students:
- FICA (Social Security and Medicare) Exemption: F-1 students in the U.S. for fewer than five calendar years may be exempt from FICA taxes if they are classified as “nonresident aliens” for tax purposes.
- Income Tax Withholding: International students are generally subject to federal and state income tax withholding. However, they may benefit from any applicable tax treaties between the U.S. and their home country.
- FUTA Exemption: Employers are exempt from paying FUTA (Federal Unemployment Tax Act) tax on wages paid to F-1 students classified as nonresident aliens.
IRS: Nonresident international students are exempt from FICA taxes
Want to Learn More?
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