Work visa sponsorship costs: what employers and workers should know

In today’s competitive world, more and more U.S. small and medium-sized businesses (SMBs) are looking beyond local talent to find the specialized skills that can drive growth. Sponsoring a foreign worker for a U.S. visa can unlock an exciting and diverse global talent pool, but it comes with its own set of processes and costs.

Put simply, sponsoring an employee means a U.S. employer petitions the U.S. government on behalf of a foreign national for that person to live and work in the United States. This process is a commitment that involves government paperwork, specific responsibilities, and fees.

Employee sponsorship generally falls into two main categories:

• Temporary (nonimmigrant) sponsorship: These visas let foreign nationals work in the U.S. for a set period, often tied to a particular job.

• Permanent (immigrant) sponsorship: Often called "Green Card" sponsorship, this path allows a foreign national to become a lawful permanent resident, letting them live and work permanently in the U.S.

Navigating work visa sponsorship can seem complex. This guide breaks down the process, outlining the visa types, key steps, costs, and responsibilities. Our goal is to empower you to make informed hiring decisions, with PayPal’s financial tools ready to support your business’s global ambitions.

Table of contents

• What does sponsoring an employee mean?
• What are the types of work visa sponsorship?
• What are the key steps to sponsor an employee for a work visa?
• Who pays what? Breaking down visa sponsorship costs
• What are an employer's responsibilities when sponsoring an employee?
• Is sponsoring an employee worth it for your small business?
• Sponsoring employee FAQs

What does sponsoring an employee mean?

Before you start, it’s helpful to understand the basics of employer visa sponsorship. When you sponsor an employee, you're telling the U.S. government that you have a real need for the foreign national's skills and will employ them in a specific role. This involves submitting petitions to agencies like U.S. Citizenship and Immigration Services (USCIS) and the Department of Labor (DOL).

It's an official process that shows your commitment to the employee and to following U.S. immigration and labor laws. While it can be an intricate process, tapping into a worldwide talent pool can bring significant advantages to your business.

What are the types of work visa sponsorship?

For SMBs thinking about how to sponsor a work visa, getting familiar with the most common visa categories is a great first step. Each visa type is for different skills and employment situations.

Here are some of the most relevant work visa types for U.S. small and medium-sized businesses:

• H-1B visa (specialty occupations): This is a nonimmigrant visa for foreign nationals in "specialty occupations," which usually requires a bachelor's degree or higher in a specific field.

• L-1 visa (intracompany transferee): If your SMB has foreign branches, this visa lets you transfer executives, managers, or employees with specialized knowledge to your U.S. operations.

• O-1 visa (extraordinary ability): This visa is for people with extraordinary ability in the sciences, arts, education, business, or athletics.

• TN visa (NAFTA professionals): Available only to citizens of Canada and Mexico, the TN visa helps professionals enter temporarily for business activities.

• EB-2 / EB-3 visa (employment-based green card): These are immigrant visas that lead to lawful permanent residency (a Green Card). The process is more involved, but it offers long-term stability. ¹

Many small businesses use the H-1B visa, but other types, such as the TN, L-1, or O-1, may be a better choice depending on your sector. It's a good idea to check which visa best fits your business needs and the employee's qualifications.

What are the key steps to sponsor an employee for a work visa?

Sponsoring an employee is a highly structured process. While the exact steps can vary by visa type, the general outline below gives a solid framework.

1. Check for eligibility: First, you'll want to check if the role and the employee meet the requirements for the chosen visa.
2. File a Labor Condition Application (LCA): For H-1B visas, employers first submit an LCA with the Department of Labor (DOL). This application is part of demonstrating a commitment to fair labor practices.
3. Submit the petition to USCIS: Next, you file the appropriate petition with U.S. Citizenship and Immigration Services (USCIS), like the Form I-129 for many nonimmigrant work visas.
4. Pay filing fees: With the petition, you'll need to pay the required USCIS filing fees, which are non-refundable.
5. Wait for a decision: After you submit the petition, there’s a waiting period. Processing times can vary. Once approved, USCIS sends a notice.
6. Maintain good records: Your responsibilities don't end when the employee starts working. Ongoing compliance, like keeping accurate records and paying the employee correctly, is key.

Who pays what? Breaking down visa sponsorship costs

Understanding the costs involved with sponsoring an employee is crucial. Regulations often require the employer to cover the required USCIS filing fees and, in many cases, legal fees.

Here's a breakdown of typical costs, using the H-1B visa as an example:

It's helpful to understand which fees are usually paid by the employer. Budgeting for experienced legal counsel can be a worthwhile investment to help navigate the process and prevent costly errors.

Remember that managing these expenses effectively is part of running a smart business. Discover how PayPal can support your small business operations.

What are an employer's responsibilities when sponsoring an employee?

Sponsoring an employee isn't a one-and-done task and creates ongoing responsibilities. Staying compliant is key, as failing to meet these duties can lead to penalties for your business, such as fines or issues with future sponsorships.

Key responsibilities include:

• Paying the prevailing wage: The process includes paying the sponsored employee at or above the prevailing wage for the occupation in that location.

• Keeping good records: It’s important to keep detailed documentation of the employee's role, salary, and immigration filings.

• Reporting material changes: Any significant changes to the employee's job or work location may require a new filing with USCIS.

• Covering some transportation costs: In some situations, such as an early termination of an H-1B employee, the employer may be responsible for the reasonable cost of their flight home.

To stay on top of compliance, many SMBs choose to work with an experienced immigration attorney or HR professional. For more insights into managing your team, explore our articles on how to hire employees and small business employee management tips.

Is sponsoring an employee worth it for your small business?

Deciding to sponsor a worker is a big step, but it can also be a powerful opportunity for your business. When approached thoughtfully, it's a rewarding investment in new talent, fresh perspectives, and future growth.

Advantages can include:

• Access to specialized skills: Sponsorship lets you tap into a global talent pool.

• Employee loyalty and retention: Sponsored employees often show high levels of loyalty, which can reduce turnover.

• Diversity and fresh perspectives: Hiring from diverse backgrounds can enrich your workplace and foster new ideas.

• Business growth potential: Bringing in top talent can directly contribute to your company's growth.

Ultimately, whether sponsoring an employee is "worth it" depends on your business's needs and goals. By understanding the process, you can make an informed decision. Managing your finances smartly can help prepare you for such investments. Consider reading our article on for more tips.business money management