An H-1B worker entering the US may face this question from a Customs and Border Protection (CBP) officer: whether they have ever paid any portion of their salary to their employer. Murthy Law Firm explained that there can be various aspects to it, but if the border official determines that an H-1B worker paid their employer a portion of their salary, the H-1B worker may be removed from the country and may even face a five-year ban on re-entry. H-1B workers sometimes misunderstand the question and give the wrong answer, risking their stay in the US. An H1B worker should review the employment contract to understand the compensation structure, ensure compliance with H1B regulations, and prepare for questions from CBP or another immigration authority, the firm said.
In a standard payment flow, a client signs a contract with the staffing firm for an employee of the firm to deliver their services. The firm invoices the client and pays the employees through standard payroll. It is normal for the consulting firms to bill the clients more than what it pays the employees, as it covers the consulting firms’ operating expenses, administrative costs, payroll taxes etc. Some firms go for the revenue-sharing model, where employees may be told they earn 75% of the revenue they generate. This does not mean the H-1B employees are paying money to the employer. An H-1B should be concerned when an employer requires them to pay or reimburse for H-1B filing fees, cover “unreasonable or uncustomary payroll deductions” or return a part of their salary in cash. These practices are unlawful and can result in immigration consequnces for the H-1B worker, the law firm said.
