Staffing issues have become a struggle for many companies in the last few years. Because of this, you may be considering hiring temporary workers. Many of these visitors obtain work in the hospitality industry including hotels, restaurants, and tourism. But, if you are looking to hire a J-1 or H-2B visa worker, there are specific requirements that you must follow.

Who are J-1 and H-2B visa workers?

J-1: Participants are exchange visitors that may work as part of an approved program in the U.S. This program is used to promote cultural exchange. There are two types:

  1. Interns that are college/university students or recent graduates with no prior work experience. Interns receive a visa for 12 months plus an additional 30 days to travel in the US.
  2. Trainees are foreign professionals with a certificate, degree, or equivalent work experience. The exchange program allows them to gain exposure to U.S. culture and experience in their chosen field. Trainees receive a visa for up to 18 months plus 30 days to travel in the U.S.

H-2B: Participants are nonimmigrants hired for temporary, non-agricultural work.

Payroll Requirements:

  • Both J-1 and H-2B workers are required to obtain a social security number.
  • Both types of workers are taxed on all income they earn from employment in the U.S.
  • J-1 workers are subject to federal, state, and local income tax and are exempt from social security and Medicare taxes.
  • H-2B workers are subject to all federal, state, and local tax withholding.

Employer Requirements:

J-1 workers must have a sponsor. A sponsor can be a third-party company or the employer if they meet certain requirements. A third-party company can assist with the visa application process, ensure participants have proper insurance coverage, and evaluate the participant’s English proficiency. The employer can become a sponsor if they meet certain financial requirements and have three or more years’ experience in international exchange.

H-2B workers are sponsored directly by the employer. The employer must obtain a Temporary Labor Certification from the Department of Labor. This certification confirms that there are not enough U.S workers to perform the temporary work.

  • The employer is responsible for all visa, border crossing, and visa-related expenses. If the employer does not pay these fees directly, they must reimburse the employee in the first work week.
    • The employer must provide all transportation, along with meals and lodging, during the travel for initial arrival and departure from employment.
    • The employer must provide all tools, supplies, and equipment required to perform the work.

Employer Forms to File:

Rules & Restrictions:

J-1 workers

  • Participants must be provided with an on-site supervisor.
    • Cannot participate in a position that includes unskilled or causal labor; child, elderly, or patient care; or anything related to aviation.
    • Position cannot be more than 20% clerical work.
    • Hospitality and Tourism programs must rotate the participant’s department or position at least three times.

H-2B workers  

  • Work performed must be for a temporary need: one-time occurrence, seasonal, or peak season.
    • The position must be a full-time, temporary position of at least 35 hours per week.
    • Wages paid must be at a fair rate and must not be more than what a U.S. worker would make for the same position.
    • The employer must make and document their genuine effort to recruit U.S. workers for the position. They must submit a job order to the State Workforce Agency and post the job for at least 10 days to recruit U.S. workers.

Hiring temporary workers can be a beneficial solution for companies facing staffing shortages. By carefully considering these factors, businesses can effectively navigate the process of hiring international workers to meet their operational needs.

Written by Nicole Stegall, Manager – Business Accounting & Linda Strong, Senior Associate – Business Accounting