US Visa &

Tax Terms
By – Shivendu
Chatterjee
US Visa
 What is a Visa?
A document indicating that the
holder is allowed to enter and stay
for a specified period of time in a country.
How US Visa looks like:
 Types of US Visa

Immigrant Visa:

An Immigrant visa is issued to someone who wants to stay and

work permanently in USA. Immigrant visa holder does not get
US citizenship and continues to be a citizen of his or her country.

Types of Immigrant Visa :

Green Card :-
An official document issued by US government to individuals
who wish to stay and work in US permanently. US GC is also
at times called LPR (Lawful Permanent Residence) .
 Types of US Visa

Non-Immigrant Visa:

This Visa is given to those immigrants who wish to stay in US on

a temporary basis for a certain purpose – tourism, medical
treatment, business, family visit, temporary work or study.

Common types of Non-Immigrant Visa :

1) Tourist or Business Visa

2) Work Visa
3) Student Visa
 Tourist/Business
Visa
There are two types of Visas offered under this category.
They are:

B-1 Business Visa

B-2 Tourist Visa

Duration: 6 Months
Visa Extension: Up to 6 Months in case of B1 visa
 B-1 Visa
B-1 The B1 visa is a non-immigrant US
visa that permits visitors to enter the US. for
business purposes. B-1 visa holder cannot engage in
any form of employment.

B1 visa holders can engage in the following activities:

• Negotiate contracts.
• Consult with business associates in the US.
• Settle estates.
• Attend conferences, educational, professional, or
business events.
 B-2 Visa
B-2 The B2 visa is the visa which allows you
to enter the US with the purpose of tourism,
pleasure, or visit to friends and family.

B2 visa holders can engage in the following activities:

• Have a holiday in the US.

• Visit friends or family.
• Visit the country for medical treatments.
• Participate in events or contests related to music or sports,
for which you will not receive payment.
• Enroll in short study courses for which you will not receive
credit (ex. cooking classes).
 Application Procedure
For B1/B2 Visa

1. Submit Form DS-160.

2. Pay visa fees $160
3. Schedule your US Tourist Visa interview.
4. Compile your B1/B2 Visa document file.
5. Attend the visa interview.
 Work Visa – H1B

H1-B The H1B visa is a U.S work visa that allows

companies to employ non native workers in specialty
occupations. The worker should have at least a Bachelor’s
degree in the work related field.
The H1B work visa is initiated by a U.S employer. When the
employer has an open job position and they cannot find an
American employee who is qualified enough to complete
the work the employer can get a non American worker on
H1B.
USCIS every year accepts only 65000 H1B applications.

Duration: 3 + 3 Years
Dependent to H1 (H-4) The H-4 visa is issued by the U.S.
Citizenship and Immigration Services (USCIS) to
immediate family members of the H-1B visa holders,
which includes only the spouse and children under
21 years of age.

As of April 2019 H-4 visa holders are not allowed EAD and
cannot work in USA.

Duration: 3 + 3 years
 Application Procedure
For H1B Visa

Employer:
1) Files LCA (Labour Condition Application)
2) Files a petition with USCIS (Form I-129*)

Employee:
1) Fills Form DS-160
2) Schedules a visa interview
3) Pays the required fees ($1600-$7400)
4) Submits required documents
5) Attends the interview
* Form I-129, Petition for a Non immigrant Worker
 Work Visa – L1
L-1 (for intra company transferees) This Visa is
required if you are an employee of an international
company and if it is transferring you on temporary basis
to the parent branch or an affiliate or a subsidiary of the
company.
L1 visa has two categories. First is L-1A, which is for
managerial or executive position. And second is L-1B, which
is for people with specialized knowledge in a certain field.
There is no limit or cap on the number of L1 visas granted to
applicants each year.

Duration: 3 + 2 + 2 years for L-1A and 3 + 2 years for L-1B

Dependent to L-1 (L-2) This visa is required for dependents of
L visa holder.
An L-2 visa holder can apply and acquire an EAD and then can
work in U.S.

Duration: 3 + 2 years
 Application Procedure
For L1 Visa

Employer:
1) Files a petition with USCIS (Form I-129*)

Employee:
1) Fills Form DS-160
2) Schedules a visa interview
3) Pays the required fees ($2000 - $6500)
4) Submits required documents
5) Attends the interview
* Form I-129, Petition for a Non immigrant Worker
 Application Procedure
For L2 EAD

– Filing fee: Currently $410 (Please check on USCIS site for latest
fees)
– I-765 form (application form for employment authorization)
– L1 approval notice of spouse
– Copy of Passport
– Copy of I-94 (Arrival/Departure report card)
– Two photographs
– Copy of SSN (If you have)
 L1 VS H1B Visa
H1B L1

Application needs LCA Application doesn't need LCA

H1B allows dual intent, meaning L1 allows dual intent, meaning L1

H1B visa holders can apply for visa holders can apply for
permanent residence under a permanent residence under a
Green Card visa scheme without Green Card visa scheme without
jeopardising their H1B visa status. jeopardising their L1 visa status.
Only 85000 visas are issued each
No quota
year
At least a Bachelors degree in
No specific education required
employment related field
Dependent spouse can not obtain
Dependent spouse can obtain EAD
EAD
 L1 To H1B Change of Status
1. You need an employer who can sponsor you for H1. It can be
same employer with whom you have L1 or a new employer. You
don't need to quit your job that you have on L1, if you decide to go
with new employer until you get your H1 status approved.
2. Fresh H1 can be filed only once a year and that is April 1st,
however you need to start preparing long before that. Finding
employer, negotiating on salary, alignment as who will pay for the
Visa, paper work etc. takes so much time. April 1st USCIS will
start picking up H1 applications thru lottery and they will close it
once they have 65000 H1 applications (+20000 for applicants
who hold US master degree) picked up. This usually takes 4–7
days.
3. If you get picked up, they will process your application and if
approved, you'll have authorization to work on H1B starting
October 1st if the same year.
 H1B To Green Card
1. Getting Perm Labour Certification: First of all the employer needs to
apply for Perm Labour Certification. To start the process of getting their
employees a Green Card, employers must file to get the PERM
Certification from the DOL.

2. Filling form I-140: The I-140 form proves that the employee will get
the wage that has been advertised in the recruitment phase and that
they are eligible to work and live in the U.S permanently. When the
employer files Form I-140, they will get a visa number, which is
accompanied by a date. The priority date indicates when the case will be
processed.

3. Filling form I-485: The final step which concludes the process of H1B
to Green Card is for the employee to file for Adjustment of Status. I-485
form is sent to the USCIS and if approved, will allow the employee to
work and live permanently in the U.S as a legal person.
 Categories of Employment
Based Greed Card
Around 140,000 people each year qualify to get an Employment Based
Green Card. There are 5 categories of employees who can file to go from H1B
to Green Card. Depending on the employee’s category the employee gets a
priority date or gets the waiting period. The three most common categories
are:

1. E-B1 or Priority Workers :

The EB1 category is the one which most people want to apply but few
qualify for it. The priority dates are usually current so they get processed
quite quickly. Those who qualify for E-B1 are:

• Exceptional professors and researchers

• Managers and executives
• Those with extraordinary abilities in business, arts, sciences, education,
or athletics
2. E-B2 or Professionals with exceptional ability or advanced degrees:
Annually around 2,802 visas plus those not used for E-B1 are given to E-B2
applicants. These include:

• Those with extraordinary abilities in art, business, and science

• Those with advanced degrees (Masters or PhD degrees)
• Physicians who will serve in under served areas in the U.S

3. E-B3 or Skilled/Professional Workers:

This category gets another 2,802 visas plus those not used by E-B2. The
following qualify for an EB3 Green Card:

• Those with Bachelor Degrees

• Skilled workers who have a minimum of two years experience or training
• Unskilled workers
 Work Visa – TN Visa
TN Visa The visa category "Professionals Under the North
American Free Trade Agreement" (NAFTA), also known as a
TN (Treaty NAFTA) visa, is available only to citizens of
Canada and Mexico.
Once TN status is granted, it is valid for up to three years but
only for the specific employer for which it was originally
requested. Changing employers will require to start from
scratch with a new application.

Duration: 3 + 2 years
Dependent to TN (TD) This visa is required for dependents of
TN visa holder.
A TD visa holder can not apply and acquire an EAD and hence
cannot work in U.S. during their stay.

Duration: 3 + 2 years
 Student Visa
Foreign citizens who come to study in the U.S. are
required to be accepted by the school or program.

Types of Student Visa:

F-1 For full time graduate or post graduate education

Duration: 5 years or duration of education + 60 days

M-1 For non-academic or vocational training in the U.S.

Duration: 1 year or duration of education + 60 days

Students who leave U.S. for a break in studies for 5 months or

more may lose their F-1 or M-1 status unless their overseas
activity was related to their course.
 Things You Must Know
USCIS (United States Citizenship & Immigration
Services): The issuing authority of all types of visa and
other related documents. The USCIS works under US
Department of Homeland Security (DHS)

CPT (Curricular Practical Training) : For course related

work (full/part time) during the education years.

OPT (Optional Practical Training) : For course related

Full time work after the education years.

Form DS-160: This is online non immigrant visa application.

Officers use the information entered on the DS-160 to process
the visa application and, combined with a personal interview,
determine an applicant's eligibility for a non immigrant visa.
Form I-94: It is the arrival/departure record issued to non-
immigrant visitors. The visitors are given a CBP admission
stamp on their passport. The visitor must exit the U.S. on or
before the departure date stamped on the I-94.

EAD (Employment Authorization Document) : Form I – 765,

also knows as the work permit is given to US non citizens. GC
holders do not require EAD.

Form I-140: This form is used to fill petition for an alien worker
to become a permanent resident in the United States.

Form I-797 is a document the United States Citizenship and

Immigration Services (USCIS) uses to communicate with
applicants.
 Case 1:
Name: Akshara Narayan
Past : Finished B-Tech from Delhi College of Engineering
Present : Has got admission to New York University
 Akshara’s Story:

F1 Visa
issued by CPT is issued
college by ISS works for full/part time
after 9 months

Finds an employer works for < 12 + 24 months

Graduates and
for H1B (STEM)
gets OPT

Initiates GC
Process
 Case 2:
Name: Rajat Saxena
Past : Has been working with Tech Mahindra as Project
Lead
Present : Wishes to go to US to work
 Rajat’s Story:

Finds an Employer files for PERM

employer & Labour certification
gets H1B visa (3-13 months)

Files I-140 gets approved Files & gets

I-485 I-140 approved
(6-8 months)

I - 485 gets approved (6 to 151 years*) Gets GC

* The waiting time depends on whether the applicant is in EB1, EB2 or EB3 waitlist
US Tax-terms
W2 - For EAD* holder/ US citizen/ H1B/
Green Card holder
Process: Works with a company, company deducts
tax and gives the rest to the individual. There are two
types of W2 arrangements:

a) W2 Salaried: In this the employer pays the employee on a

daily rate basis. That means the consultant will be paid for
800 hours instead of 880 hours in a monthly basis. The
candidate is normally paid benefits but is not allowed for
over time.
b) W2 Hourly: In this the employer pays the employee on an
hourly basis. This means the candidate is paid for full 880
hours instead of 800 hours (8 hours a day X 5 days a week X
22 days a month)
 Benefits Offered by
Employer
401(k): A 401(k) is a retirement savings plan sponsored by an
employer. It lets workers save and invest a piece of their pay
check before taxes are taken out. Taxes aren’t paid until the
money is withdrawn from the account

Paid Time Off (PTO): Paid time off or personal time off (PTO) is
a policy in some employee handbooks that provides a bank of
hours in which the employer pools sick days, vacation days, and
personal days that allows employees to use as the need or
desire arises.

Health Insurance Coverage: Many employers offer

Medical/Dental/Vision health insurance coverage to employees.
The cost incurred by the employer on insurance is
generally added in the per year salary.
C2C - For EAD* holder/ US citizen/ H1B/
Green Card holder
Process: Individual works for Corp 1 (Client) ,
Corp 1 pays Corp 2 (Employer) , Corp 2 deducts
fees + tax and rest goes to the individual

1099 - US citizen/ Green Card holder (Holding their own

corporation)
Process: Works for a company, company pays complete salary.
The individual pays taxes to IRS on his own.