Cost of H1B Sponsorship – The H1B visa is one of the most popular work visas for foreign professionals seeking employment in the United States. However, obtaining an H1B visa involves multiple costs, primarily borne by the sponsoring employer. These costs vary based on company size, legal fees, and government-imposed charges. Understanding these expenses is crucial for both employers and employees navigating the H1B sponsorship process.
Government Fees for H1B Sponsorship
Employers must pay several mandatory government fees when sponsoring an H1B visa. These include:
- Base Filing Fee: The U.S. Citizenship and Immigration Services (USCIS) charges a standard application fee of $780 for filing Form I-129 in 2025.
- ACWIA Fee (American Competitiveness and Workforce Improvement Act): Companies with fewer than 25 employees must pay $750, while those with 25 or more employees must pay $1,500.
- Fraud Prevention and Detection Fee: A $500 fee is required for first-time H1B sponsorships or when changing employers.
- Public Law 114-113 Fee: Employers with more than 50 employees, with at least 50% on H1B or L1 visas, must pay an additional $4,000.
- Premium Processing Fee (Optional): For faster processing, employers can pay $2,805 to USCIS for a decision within 15 calendar days.
- Visa Issuance Fee: If approved, the employee may need to pay visa issuance fees, which vary by country.
Attorney and Legal Fees
Many employers hire immigration attorneys to handle the H1B visa process. Legal fees can range from $2,500 to $6,500, depending on the complexity of the case. These fees cover legal consultations, form preparation, and responding to Requests for Evidence (RFEs) if necessary.
Additional Costs of H1B Sponsorship
Beyond government and legal fees, there are other costs to consider:
- Job Advertising Costs: Some companies advertise job positions to show compliance with U.S. labor market requirements, which can cost between $100 and $1,500.
- Relocation Expenses: If an employer offers relocation assistance, it may add to the total sponsorship cost.
- H1B Visa Stamping Fees: Employees applying from outside the U.S. may need to pay visa stamping fees at U.S. consulates.
- Dependents’ Costs: If the H1B employee has dependents applying for H4 visas, additional fees apply. The filing fee for an H4 visa is around $370, with an additional $85 biometric fee per dependent.
- Wage Compliance and LCA Certification: Employers must comply with the Department of Labor’s wage requirements, which may involve additional administrative costs.
Employer vs. Employee Cost Responsibilities
By law, employers must cover most H1B sponsorship costs, including filing and fraud prevention fees. However, employees may be responsible for costs like visa stamping, travel expenses, and premium processing if they request it for personal reasons.
Recent Changes in 2025
The USCIS has increased the H1B application fees in 2025 to account for administrative costs and improve visa processing efficiency. Additionally, there is stricter scrutiny on applications, leading to a rise in Requests for Evidence (RFEs), which may increase legal expenses for employers.
The Biden administration has also proposed changes in wage levels for H1B holders, requiring employers to meet higher salary benchmarks to ensure foreign workers are paid fairly compared to their American counterparts. This change could result in increased costs for companies hiring H1B employees.
Tips for Employers to Manage H1B Costs
- Plan Early: Initiate the H1B process well in advance to avoid premium processing fees.
- Use In-House Legal Teams: If possible, use internal legal resources to save on attorney fees.
- Budget for the Entire Process: Employers should consider all potential costs, including legal fees, compliance, and relocation assistance.
- Explore Alternatives: Consider alternative visa categories like L-1 or O-1 visas that may have different cost structures.
Costs of H1B Sponsorship – Conclusion
The total cost of H1B sponsorship varies but generally ranges from $5,000 to $10,000 for small employers and up to $15,000 or more for larger companies subject to additional fees. Employers must budget accordingly to ensure a smooth sponsorship process, while employees should be aware of any costs they may need to cover personally. With changes in 2025, including increased fees and stricter wage requirements, companies must stay informed to navigate the H1B visa process efficiently.