Hiring foreign workers is becoming increasingly popular for US organizations. It allows them to widen their talent pool, gain diverse perspectives, and avoid many of the costs and hassles associated with full-time employees. But what happens when those contingent workers are from another country? If there is a shortage of skilled workers to fulfill a job opening, looking for staff outside of the US may seem tempting; after all, the world is becoming more globalized by the minute. Hiring foreign workers on a contingent basis offers many benefits to businesses. Still, they must understand the process and regulations required by the US Department of Labor before they say, “you’re hired.” Keep reading for our step-by-step guide to hiring contingent workers in other countries.
Hiring Foreign Workers: A Step By Step Guide
Hiring contingent foreign workers can be a challenge, but this simple step-by-step guide will help you ensure you have all your ducks in a row.
Step 1 - Paperwork
The first step to hiring international workers is to obtain the necessary certifications. There are various certifications required from the Department of Labor that must be completed before interviewing, and hiring can begin in the US. Firstly, your organization will need to prove that there are not enough qualified workers in the US to fill your vacancy. Secondly, you will need to provide evidence that your job opening meets the selected foreign labor certification program’s criteria. Lastly, your business must agree to pay the worker a fair hourly wage for work performed. After all of the forms are completed, you will mail them to the Department of Labor for approval.
Step 2 - Interviewing
Now that you are certified to hire a contingent international worker, it’s time to interview candidates. The hiring process for contingent workers is similar to hiring any other type of employee. You will need to post the job to a job board, perform a phone screen, and, if applicable, an in-person or virtual interview. It’s important to understand that finding the right contingent worker in another country will require additional time given vastly different time zones, immigration issues, visas, and potential language barriers. Set a reasonable timeline for hiring and keep an open mind.
Step 3 - Hiring Foreign Workers
Now that you have interviewed candidates and narrowed down your choices, you will need to apply for a work visa from U.S. Citizenship and Immigration Services. If your candidate is already in the U.S., you can use Form I-9 to verify their work authorization. If your candidate is not in the U.S., you will have to sponsor a visa, which can add time and hassle to your onboarding process.
Step 4 - Taxes
Anytime you hire a foreign contingent worker, you will need to comply with foreign workers’ specific tax regulations. Tax laws change all the time, so it’s wise to verify the latest tax laws applicable to your company and the new contingent worker. Contingent workers will need to obtain a social security number from the Social Security Administration to pay payroll taxes to the US government. Additionally, a W-8 BEN will be required for workers who perform work in their home country for a US company. A Form I-9 for foreign workers working in the US will need to be run through the E-Verify system to check work eligibility.
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