As you grow your business, it’s natural to hire more employees. One strong option for small business owners is to hire foreign workers, either those living in the U.S. or working remotely for your U.S.-based company from their home around the globe. Let’s dive into everything you need to know about hiring foreign workers in the U.S.
Why Foreign Employees Can Boost Small Businesses
Foreign employees are an often-overlooked base of potential employees that can provide many benefits, especially for small businesses. As a small business owner, you should know that international talent is available, even on a part-time or seasonal basis. International talent doesn’t have to live in the U.S. to work for you. The growth of remote work has made this possible, and opened the doors for small business owners.
Building a team of employees from different areas of the world, with different skill sets and backgrounds, has many advantages. Here are just a few of the benefits of hiring foreign employees:
- Diversity. Different backgrounds add different perspectives. When you hire employees from different parts of the world, you can learn from their unique experiences and points of view, which can open your business to new processes, products, or cultures.
- Reduced employment costs. Employees in many parts of the world have a lower cost of living, which means they don’t need as high wages as employees in the U.S. Reduced employment costs can be helpful for a small business trying to operate with a lean model and limit their expenses while still growing.
- Increased scheduling flexibility. Foreign employees in different time zones can work beyond America's typical 9–5 schedule. That flexibility creates opportunities for serving customers in other parts of the world or for extended hours, expanding the potential reach of your business.
How To Hire Foreign Workers
Hiring foreign workers may seem more complicated than hiring domestic employees, but there are many resources available to support you as a small business owner. Processing times for foreign labor certification can vary widely depending on the employer and the specific details of the application, so planning ahead is critical. Here is the basic process for hiring foreign workers:
- Apply for labor certification through the U.S. Department of Labor that allows an employer to hire foreign employees permanently. The process varies depending on the location and type of business but generally requires completing and submitting several forms.
- Interview prospective foreign workers. This process is similar to hiring local employees and requires testing potential employees' qualifications and fit.
- Have the candidate apply for a work visa from U.S. Citizenship and Immigration Services. The person filing must already have a job offer from an eligible employer and complete a series of forms and an interview.
- Verify the tax laws applicable to your company and the foreign worker. Even foreign workers have to pay income tax in the U.S. unless they work in a state that doesn’t collect income tax. In most cases, a foreign worker is subject to federal income withholding tax at a standard flat rate of 30%.
Resources To Help Find and Hire Foreign Employees
If you want to hire foreign workers, you aren’t alone. There are numerous resources to guide you through the process and point you toward qualified foreign applicants.
The U.S. Department of Labor provides many resources for small business owners, especially as they apply for labor certification. Through a variety of forms, documents, and FAQ pages, small businesses can navigate the process and stay compliant.
Specific job boards for foreign employees help connect employers with foreign workers. These job boards can be tailored to job type, industry, or location and introduce employers to strong candidates matching their qualifications.
To stay current on changing regulations and processes, small business owners and HR leaders can participate in training and courses from sources like SHRM and other industry leaders. These courses can provide tailored advice from trusted HR leaders.
Foreign workers can be a great addition to your small business workforce. By following these steps and allowing time to work through the process, you can find great talent to take your business to the next level.
Disclaimer: Fundbox and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.
