Why Hire International Students And What You Should Know Before You Do
Why International Students are The Talent You Are Looking For
The National Association of Colleges and Employers cite “Global and Intercultural Fluency” as one of the most in-demand career readiness skills that are sought upon graduation (Source). However, there seems to be a disconnect between what companies know is valuable and how they can view international students as a way to fill those talent needs, if at all. This document will demystify the process and address the myths of hiring international talent.
At Cal Poly Pomona international students represent 7% (or over 1,800 students) of the student population and come from more than 44 countries, with Cal Poly Pomona ranked in the top 10% of schools who serve international students (Source, 2020). The number of international students in the U.S. has risen to over 1 million in the last decade (Source).Organizations today are connected globally and those who hire international students have a competitive advantage. International students bring great value to any organization and contribute to its success in many ways.
There are various misconceptions about hiring international students, but it is not much different than hiring local students. The following information provides clarity on aspects of hiring international students and can help your organization regarding U.S. immigration rules.
- International students are authorized by the university’s International Student & Scholars Office (ISSO) to work under Curricular Practical Training (CPT) for internships and jobs during the course of their studies and by the United States Citizenship and Immigration Services (USCIS) for Optional Practical Training (OPT) for work after completion of their degrees.
- In terms of process and cost, students own the responsibility of completing the paperwork and submitting it the appropriate party, whether ISSO or USCIS.
- There is no need to apply for or sponsor any visas during CPT and OPT periods.
- There are no extra costs and in fact, employers save approximately 8% of students' salaries due to exemptions from Social Security and Medicare tax requirements (FICA taxes).
Advantages of hiring international students include:
- New perspectives and problem-solving skills
- Global/Intercultural Fluency- the ability to value, respect and learn from diversity. Demonstrate openness, inclusiveness, sensitivity and excel in diverse workplaces (Source)
- Proficient in different languages and have knowledge of the markets, business practices, and cultures of other countries
- Courage to tackle the unknown and adapt to new environments
- And STEM student can be especially helpful to small businesses! (Source)
How to Hire International Students
How to Hire Currently Enrolled Students for Internships
International students do not require visa sponsorships to participate in U.S. internships. All international students are eligible to work in internships after the first year of their programs and do not require visa sponsorships from organizations. Most students hold F-1 status levels and qualify through a grant of Curricular Practical Training (CPT). Work authorization is issued by Cal Poly Pomona’s International Students & Scholars Office. Hiring international students requires no more paperwork than hiring U.S. workers. The only paperwork that will be required to hire an international student is a Job Offer Letter. Please click here to download a template of required information.
How to Hire Graduating International Students for Full-Time Positions
Getting permission for international students to work in the U.S. is not as difficult as many employers think. Most international students are in the U.S. on non‐immigrant student visas (F‐ 1 and J ‐1), and these international students are eligible to accept employment under certain conditions.
International students have at least 12 months of U.S. work authorization after graduation and STEM students are eligible for 24-month extensions. Upon graduation, all F-1 students have U.S. work authorization for 12 months through a grant of Optional Practical Training (OPT). STEM (Science, Technology, Engineering, and Mathematics) students can receive extensions of 24 months, thus allowing them to work full-time for 36 months after completion of their degrees. During this period employers do not need to secure work authorization from USCIS. There are no extra costs and this becomes the first step to ensuring smooth transitions while converting these employees to long-term hires.
Tax Considerations
Unless exempt due to a tax treaty, F‐1 and J‐1 students earning income while working on practical training are subject to applicable federal, state, and local income taxes. Information on tax treaties may be found in Internal Revenue Services Publication 519, U.S. Tax Guide for Aliens, and 901, U.S. Tax Treaties.
Generally, F‐1 and J‐1 students are exempt from Social Security and Medicare tax requirements. However, if F‐1 and J‐1 students are considered "resident aliens" for income tax purposes, Social Security and Medicare taxes should be withheld. Chapter 1 of Internal Revenue Services Publication 519, U.S. Tax Guide for Aliens explains how to determine the residency status of international students. More information on Social Security and Medicare taxes can be found in Chapter 8 of Internal Revenue Services Publication 519, U.S. Tax Guide for Aliens and in Section 940 of Social Security Administration Publication No. 65‐008, Social Security Handbook.
Frequently Asked Questions
Federal regulations require that students terminate their employment at the conclusion of the authorized practical or academic training. However, students on an F‐1 visa, or students on a J‐ 1 visa who are not subject to a two‐year home residency requirement, may continue to be employed, if they receive approval for a change in visa category‐ usually to an H‐1B. Students must have a minimum of a bachelor's degree in order to qualify for H‐1B status.
Individuals may work in the U.S. for a maximum of six years under an H‐1B visa (Source). This visa is valid only for employment with the company that petitioned for them. They must re‐apply to the USCIS if they wish to change employers. As soon as the initial job offer is made, they should petition for an H‐1B visa if employment is likely to extend beyond the practical training period.
- Current US immigration regulations allow for a variety of different types of specific visas for areas of employment such as nursing, investing, intercompany transfers, and foreign media employees among others. (Source)
- Citizens of Mexico and Canada can take advantage of special employment provisions under the Trade NAFTA (TN) agreement (Source)
Yes. These are great resources.
- Code of Federal Regulations
- SEVP Policy Guidance on OPT (Please note that the 2016 final rule effective May 10, 2016 reformulated the STEM OPT benefits and its length).
- STEM OPT
- STEM OPT Reporting Requirements for Students, Employers, and DSO
- Form I-983
- OPT Information
Brought to you by Cal Poly Pomona’s International Students and Scholars Office and Career Center. Adapted from the following sources:
- Career Readiness Defined | NACE
- California State Polytechnic University - Pomona International Student Report | College Factual
- Employer Guide for Hiring International Students | University of Chicago
- Enrollment Trends | Open Doors Data
- Hiring International for Employers | UMass
- Value Of Hiring International Students | Rutgers
- What Employers Should Know About Hiring International Students | NAFSA
- Working in the United States | USCIS
- Hiring an International Student | University of Wisconsin, Madison
Key Terms
Practical training is a legal means by which F‐1 students can obtain employment in areas related to their academic field of study. Students, in general, must have completed one academic year (approximately nine months) in F‐1 status and must maintain their F‐1 status to be eligible for practical training. There are two types of practical training:
- Optional Practical Training
- Curricular Practical Training
Pre‐Completion OPT can be used by F‐1 students prior to the completion of their studies. Students can request to work:
- part‐time, a maximum of 20 hours per week, while school is in session
- full‐time during vacation when school is not in session or
- full‐time/part‐time after completing all course requirements for the degree excluding thesis or equivalent.
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