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How to Hire Foreign Employees for Your Business
The pandemic has disrupted business operations in profound ways, including how they hire new talent. Now more than ever before, businesses have access to a global talent pool, reducing talent shortages. Hiring foreign workers comes with numerous benefits, including diversity in your workforce, improved productivity, cost savings, and global talent. That means you can find top talent for your company from any part of the world.
However, many businesses miss out on these many advantages due to the complexities of the hiring process. From filling out the W8-BEN form to applying for a VISA and work permit, you must comply with the complex U.S. tax regulations and local labor laws before hiring and paying foreign workers. However, this shouldn’t prevent you from enjoying the many benefits of building global teams.
The Department of Laborโs objective is to protect American citizensโ work opportunities and rights. Generally, the U.S. government only approves foreign workers to fill open positions that the employer has been unable to find local workers to fill and those that are essential to the countryโs economy. To aid in this process, employers can utilizeย applicant tracking softwareย to efficiently manage and review applications, ensuring they find the best local candidates before seeking foreign workers
Here is a detailed guide on how you can compliantly hire foreign employees for your business:
- Secure Certifications
The Department of Labor’s objective is to protect American citizens’ work opportunities and rights. Generally, the U.S. government only approves foreign workers to fill open positions that the employer has been unable to find local workers to fill and those that are essential to the country’s economy.
You must prove to the Labor Department there is a shortage or insufficient qualified workers in the U.S to fill your open position before hiring a foreign employee. Prove the post meets the criteria for the chosen foreign labor certification program. You also need to prove you can pay the prospective candidate the required wage. This confirms that hiring foreign employees won’t affect job opportunities, working conditions, or wages for American workers.
- Recruit and Interview Candidates
Once the Department of Labor approves your request and you know what roles you want to fill with foreign employees, you can start the search to fill your vacancy. Post your job opening on the appropriate job boards, review submitted resumes, and carry out the hiring process as usual. Keep an open mind when reviewing international resumes because they can differ from the U.S. resumes. Be sure to indicate any information you would not want to be included in the resume in your job description.
It’s also important to keep in mind that the hiring process for international talent can take longer. That’s mostly because your prospective candidate must be approved for their visa prior to officially hiring them, which usually takes a lot of time to complete. Once you’ve narrowed down your potential candidates, you can begin interviewing them using video conferencing solutions such as Skype.
- Apply for a Work Visa
As the employer, you’re responsible for acquiring visas for your prospective foreign employees. You’ll incur some significant costs to obtain a work visa, and the process can take weeks, if not months, to complete. There is also the risk of your visa application getting denied.
Apply for a work visa for your international worker from the U.S. Citizenship and Immigration Services. The process involves applying for a Labor Condition Application, availing company statement and other requested documents, and filing the petition for a work visa for your prospective international worker.
- Verify the Tax Laws
All international employees who work in the U.S are subject to payroll taxes. As such, you need to confirm tax laws applicable to your company and the candidate. So, your prospective candidate should apply for a Social Security number from the Social Security Administration. If they are working remotely from their country of residence, they’ll need to complete Form W-8 BEN. Iif they’re full-time, part-time, seasonal, or temporary workers, they should also complete Form W-2. Moreover, it’s crucial to address the question: is social security taxable? Understanding this aspect is vital for ensuring compliance and managing tax liabilities effectively.
Endnote
From determining which visa can best suit your hiring needs to securing certifications, the process of hiring international talent can be complex and challenging. However, planning ahead can help you anticipate which visa program to use and what documentation you’ll need to compliantly bring your prospective international employee on board.

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