Visa sponsorship: How much does it cost to sponsor a work visa?

Published

Sep 12, 2024

Businesses have any number of reasons to sponsor a work visa. It could be to attract top talent, recruit highly specialized workers, fill skill gaps, or enhance workforce diversity. However, sponsoring a work visa—especially in the US—is a complex process that requires a significant investment of time and money. The costs can add up depending on the type of work visa and factors like company size and employee circumstances. You could be looking at thousands of dollars to cover filing fees, legal costs, and other related expenses—just for a single visa. This guide will examine the costs of sponsoring a work visa, the different types of work visas available, and your obligations as an employer. 

Work visa sponsorship cost in the US: A breakdown of the fees

The cost of sponsoring a work visa in the US varies depending on a number of factors, including whether the visa is a nonimmigrant or immigrant visa. A nonimmigrant visa is temporary and has an expiration date. The applicant must prove they intend to return to their home country after the visa expires. On the other hand, an immigrant visa doesn’t expire and provides a path for the holder to live and work in the US permanently. 

Nonimmigrant visa costs

Sponsoring a nonimmigrant visa can be expensive. There are a number of fees and costs to consider when deciding to sponsor a foreign worker. These costs vary depending on the type of visa and other factors, such as company size. 

Petition fee

In most cases, a petition fee is submitted with Form I-129 (Visa Petition for a Nonimmigrant Worker) and supporting documentation to US Citizenship and Immigration Services (USCIS). For the popular H-1B visa, the petition fee ranges from $730 to $1,385.

Asylum program fee

USCIS introduced this fee in April 2024. It applies when filing certain immigration forms like Form I-129. It ranges from $300 to $600 depending on the business's number of employees. USCIS uses the fee to offset costs in other areas of the agency. Nonprofits are exempt from this fee.

Fraud prevention and detection fee

Specific visa categories are subject to an additional USCIS fee of $500 to detect and combat fraud. 

Public Law 114-113 fee

Companies with more than 50 employees in specific visa categories (H-1B, L-1A, or L-1B) may be required to pay an additional fee of $4,500. 

ACWIA fee

The American Competitiveness and Workplace Improvement Act fee (ACWIA) applies to employers sponsoring H-1B visas. The cost ranges from $750 to $1,500, depending on the number of employees employed by the petitioner. 

Application fee

This fee is for a passport stamp granting entry into the US. It is obtained in the worker’s home country and ranges from $205 to $315. The employee usually pays this fee.

Premium processing

Premium processing is USCIS’s expedited service, guaranteeing processing in 15 business days. The fee for most common nonimmigrant work visas is $2,805. Note that expedited services are not available for all visa categories. 

Additional fees

Additional fees may apply depending on the circumstances of the sponsorship. These can include visa extensions, biometric fees, and consular processing. 

Legal fees

Due to the complexity and dynamic nature of US immigration laws and regulations, legal guidance is indispensable for organizations sponsoring work visas. Legal experts in immigration law help businesses navigate the process, including selecting the correct type of visa, submitting forms and supporting documentation correctly, and complying with government regulations at each step. 

Legal fees vary widely, depending on the type of visa and individual situation, but nonimmigrant visas can range from $1,500 to $4,500 or more.

Immigrant visa costs

While there are some similarities with nonimmigrant visa costs, there are also specific fees that apply to immigrant visas, including: 

Labor certification

Employers must follow and cover costs related to the Permanent Labor Certification Process (PERM). The certification acts as proof that hiring an immigrant won’t affect the local job market and signifies to the immigration authorities that there aren’t enough US workers able, willing, qualified, and available to perform the job.

Some permanent resident green card visas require PERM. While there is no PERM fee, there are costs related to going through the process. These costs include expenses related to recruitment, legal fees, private wage surveys, and potential audits. The total costs associated with PERM can range from $2,500 to $5000 and more.

Form I-140 and asylum program fee

Following PERM approval, employers must file an Immigrant Petition for Alien Workers (Form I-140). The general filing fee is $715. However, the asylum program fee ($300 to $600, depending on the size of your business) may also apply.

Form I-485 fee

Employees already in the US must file Form I-485, also known as the Application to Register Permanent Residence or Adjust Status, to obtain lawful permanent residence status (green card). The general filing fee, which includes a biometric fee, is $1,440. 

USCIS Immigrant fee

A $235 fee applies to applicants immigrating to the United States as a lawful

permanent resident.

Consular processing

In some cases, the foreign worker has to file paperwork abroad. One example is the DS-160 application for a physical visa stamp at a US embassy or consulate. The employee usually pays the $205 fee. 

Premium processing

If expedited service is required, employers can opt for premium processing, guaranteeing a 15-business-day turnaround. The fee for eligible visa categories is $2,805. 

Legal fees

As with nonimmigrant visas, legal fees can be a significant expense for businesses sponsoring foreign workers. Depending on the visa and circumstances of sponsorship, legal fees can start at $5,000 and quickly reach $15,000 or more for each visa. 

Cost variations by visa type

As we’ve seen, there are a number of different fees that vary by visa type, business size, and other variables. Let’s examine the costs of sponsoring some of the most popular visas. While the costs vary within these categories, you can get an idea of how the costs of different visas differ. 

H-1B visa

The H-1B visa is for individuals employed in specialty occupations that require at least a bachelor's degree or its equivalent in a specific field. This includes areas such as IT, finance, engineering, and architecture. The H-1B visa has an annual cap, with exceptions for certain nonprofit, research, and government organizations. The H-1B visa lasts for three years, with the option to extend for up to three additional years. Fees include:

Type of fee

Cost

Petition filing fee

$460-$780, depending on company size

Fraud protection and detection fee

$500

American Competitiveness and Workforce Improvement Act fee, if required

$750 (25 or fewer full-time employees)
or
$1,500 (26 or more full-time employees)

Asylum program fee

$300-$600, depending on company size

Public Law 114-113 fee, for companies with 50 or more employees, where over 50% hold H-1B, L-1A, or L-1B nonimmigrant status

$4000

Premium processing (optional)

$2,805, if available

L-1 visa

L visas temporarily permit employees of international organizations to transfer to a branch of the same company in the US. The L-1 visa is for managers, executives, or employees with specialized knowledge. This visa type allows holders to stay in the US for up to one year and extend it for up to six more years. Fees include:

Type of fee

Cost

Petition filing fee

$695-$1,385, depending on company size

Asylum program fee

$300-$600, depending on company size

Fraud protection and detection fee

$500

Public Law 114-113 fee, for companies with 50 or more employees, where over 50% hold H-1B, L-1A, or L-1B nonimmigrant status

$4,500

Form DS-160 visa fee (consular)

$205 (usually paid by employee)

Premium processing (optional)

$2,805, if available

EB-2 and EB-3 visas

EB-2 and EB-3 visas are permanent (immigrant) work visas. Commonly known as green cards, they grant permission to work and permanently live in the US. 

The EB-2 visa category includes professionals with advanced degrees and workers with exceptional ability in sciences, arts, or business who can prove their activities will benefit the US national interest. 

The EB-3 category includes skilled workers with at least two years of job experience or training, professionals with a baccalaureate degree, and other workers for unskilled labor that isn’t temporary or seasonal. It requires a labor certification and a permanent, full-time job offer. Fees include:

Type of fee

Cost

Permanent Labor Certification Process (PERM)

$2,500-$5000+

Form I-140 (Immigrant Petition for Alien Worker) fee

$715

Asylum program fee

$300-$600, depending on company size

I-485 Application to Register
Permanent Residence or
Adjust Status

$1,440

Form DS-160 visa fee (consular)

$205 (usually paid by employee)

Premium processing (optional)

$2,805, if available

*Note that there can be slight fee differences depending on where the petition and other forms are filed (inside or outside the US).

Employer responsibilities and financial obligations

Sponsoring a work visa for a foreign national comes with responsibilities and financial obligations for US-based employers. Most of the costs involved are the responsibility of the sponsoring business. 

As mentioned above, the employer is responsible for the petition fee, application fees, American Competitiveness and Workforce Act (ACWIA) fees, and the fraud prevention and detection fee. Some fees, like the ACWIA fee, vary depending on the number of employees in your company.

There are also optional fees that an employer may have to pay, including expedited processing, the Public Law 114-113 fee (required for some H-1B visas), PERM costs, and Immigration and Nationality Act fees (i.e., biometrics fee). 

In most cases, the employer is responsible for these fees and cannot pass them on to the employee. Other costs, like legal fees, can be paid by the employer or shared with the employee if both parties agree. 

Potential additional costs

In addition to official fees and legal expenses, employers who sponsor foreign workers may face additional costs. These costs can be significant depending on the employee’s home country and other circumstances. 

Relocation expenses

Relocating an employee and possibly their family from abroad can add up. Employers need to consider airfares and other transportation costs. If the employee brings their personal belongings, shipping and storage costs should also be factored in.

Housing expenses

The foreign worker may require settlement support once they arrive in the US. This can include short-term accommodations before moving into long-term housing and, in some cases, cultural training and other support in helping them adjust to their new country. 

Alternatives to sponsoring a work visa in the US

There’s no denying that sponsoring a work visa in the US is a complex process that requires significant investment of both time and money. Tapping into the diverse and highly skilled talent pool around the world can be well worth it. But not every employer is in a position to dedicate the resources needed to secure visas for their ideal candidates—and not all candidates even want to relocate to the US, even for a dream job.

Luckily, there are alternatives. There are ways for businesses to hire top talent from around the world without sponsoring work visas to bring employees to the US. Instead, you can hire employees right where they are—in other countries—provided they already have the proper authorization to work there. There are a few different ways you can do this, which we’ll explore below.

1. Create a local entity or foreign subsidiary

No matter what country you hire in, you have to have a local legal entity there in order to hire and pay employees. Establishing a legal presence in the country allows you to do things like register your business, open a bank account, pay taxes, and other essential duties that are imperative parts of hiring, running payroll, and other mission-critical business functions.

The downside to this method is that establishing a local legal entity can be complex, expensive, and time-consuming (much like sponsoring a work visa in the US). Depending on the country, you may be required to register your business with local authorities, obtain permits and licenses, and jump through other regulatory hoops. And no matter where you’re setting up shop, your business is responsible for knowing and complying with all local employment and tax regulations.

2. Use an Employer of Record (EOR)

An Employer of Record, or EOR, is a third-party service provider that establishes a local legal entity and acts as the official employer for a company’s international employees, so they can hire around the globe without going through the complex process of setting up a local entity themselves. The EOR also takes on employment-related legal and HR responsibilities, like payroll processing, tax compliance, employment contracts, and benefits administration, which helps employers save even more time and effort. 

With an EOR, employers can hire top talent overseas with confidence, maintaining control over their employees’ activities and performance and focusing on value-adding work that grows their business—all while the EOR tackles HR busy work and makes sure they stay compliant with local employment and tax laws.

3. Hire international contractors

For businesses that want to tap into the talent and skill of the global workforce without starting a local entity or partnering with an EOR, another option is to hire international contractors. This is an especially good option for businesses that have short-term needs or need workers with specialized skills on a project basis.

The most important consideration when engaging contractors is making sure they’re classified correctly—classification rules vary around the world, but all countries have rules regarding the differences between employees and independent contractors, and the penalties for misclassification can be steep.

Hire globally quickly and compliantly with Rippling

Whether you choose to hire with your own entity, an EOR, or by engaging international contractors, Rippling can help.

Rippling can support international contractors, EOR employees, and HR and payroll for employees on your own entities—so you don’t need to replace your systems as your business scales and your needs evolve. 

Unlike other providers, Rippling can transition workers when you switch employment models while keeping all their data across documents, time tracking, expenses, and more intact.

Frequently asked questions

How do I sponsor someone for a work visa?

Sponsoring someone for a work visa depends on several factors, including your business needs and the candidate's citizenship. The typical process follows these steps:

  1. Determine eligibility. Ensure that the position and the prospective employee meet the criteria for the category of visa they’re pursuing. 
  2. Obtain labor certification, if required. For some work visas, including the H-1B visa, the employer must acquire labor certification from the US Department of Labor. This certification proves that hiring the applicant will not negatively impact American workers. It demonstrates to US Citizenship and Immigration Services that there aren’t enough US workers to perform the job.
  3. File a petition. Submit the appropriate visa petition to USCIS.
  4. Provide the proper documentation. Submit all required supporting documents, including proof of the job offer (if required), the candidate’s qualifications, and confirmation of compliance with local laws.
  5. Submit visa fees. Pay the required fees for the visa application and processing.
  6. Wait for a decision. The application results can take anywhere from a few weeks to several months. 
  7. Apply for the visa. If the petition is approved, the employee applies for the visa at a consulate or embassy. This process varies depending on the type of visa and where the employee resides. 
  8. Follow ongoing requirements. Maintain compliance with any ongoing visa requirements.

Who is responsible for paying work visa-related fees, the employer or the employee?

In general, the employer covers the costs of the visa sponsorship process, including application and legal fees. The employee may need to cover the fees for educational transcripts and translations. Some costs, like relocation expenses, are generally negotiated between the employer and the employee. 

Is the cost of sponsoring a work visa tax-deductible?

Some fees may be tax-deductible. However, it depends on the cost or fee and whether the IRS considers the expense necessary for generating taxable income. 

How much does a US work visa cost?

The cost varies depending on a number of factors, including visa type, company size, administrative costs, legal fees, and your specific situation. Before making any decisions, it’s a good idea to consult an immigration attorney for legal advice.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.

last edited: September 12, 2024

Author

Doug Murray

A Vancouver-based B2B and business trends writer, Doug is a charter member of the global workforce, having lived and worked out of Scotland, Ireland, Mexico, Guatemala, Ghana and, of course, Canada.