New H-1B "Anti-Fraud" Fee Q & A

• When did the new fee take effect?
• What does it mean for MIT postdocs and other researchers?
• What about tenure-track faculty?
• How can sponsoring departments request a check for the fee?
• Why did Congress impose this new fee?

When did the new fee take effect?

The H-1B $500 fraud detection and prevention fee applies to all H petitions for new employment or change of employer received by the Citizenship and Immigration Services processing center on or after March 8, 2005. Petitions for H-1 extension or amendment with the same employer will be exempt from the fee. US Citizenship and Immigration Services requires that this fee be paid in addition to the regular H filing fee and, when applicable, in addition to the elective "premium processing fee." The fee was part of the Consolidated Appropriations Act of 2005, signed into law by the President in December 2004.

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What does it mean for MIT postdocs and other researchers?

• The employee cannot pay the fee either directly or through salary deduction. U.S. Citizenship and Immigration Services considers this fee to be an employer business expense that cannot to be passed on to the alien beneficiary (employee).
• In addition, research funds cannot be used for the purpose of paying application fees or the anti-fraud fee.
• A faculty sponsor or department, laboratory, or center can only sponsor an employee for an H-1B visa if the $500 fee can be paid (using unrestricted funds, discretionary funds, or other sources meeting these guidelines). An Institute check for $500, payable to Department of Homeland Security, should be submitted with the other required application documents.
• H-1B sponsorship may not be the only option available to some researchers. Alternatives, such as the J-1 visa need to be discussed on a case-by-case basis with an International Scholars Office advisor.

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What about tenure-track faculty?

The sponsoring department must pay the fee for any tenured or tenure-track faculty member at the time that an H-1B petition is filed.

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How can sponsoring departments request a check for the fee?

Checks for the $500 anti-fraud fee should be processed via a Request for Payment to Accounts Payable. No purchase order is required. A new G/L, 421318, called Fees - Government, has been established. You may use this G/L for any/all H-1B visa fees, including the $500 anti-fraud fee, the $320 application fee, or the $1,000 premium processing fee.

All checks should be made payable to Department of Homeland Security.

Note: Although the the $500 anti-fraud fee must be paid by the department, the $320 application fee and $1000 premium processing fee may be paid by either the department or the scholar.

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Why did Congress impose this new fee?

Some members of Congress, U.S. Immigration and Customs Enforcement, and powerful labor unions in the United States believe that there are employers who exploit the H visa and file fraudulent petitions, to the detriment of U.S. workers. An anti-fraud task force was formed, and the new fee is designed to fund it.

Despite the very best efforts of numerous professional associations, colleges and universities will not be exempt from this fee. Fortunately, the academic community has been able to retain other hard-earned exemptions, one from the H-1B "cap," or annual quota, and another from the training fee. Non-academic employers must pay a $1500 training fee that is then used to fund programs to train U.S. workers. This is in addition to the anti-fraud fee and the standard processing fee for each H-1B application.

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Last Updated: September 2007

• H-1B Links
• General Information about H-1B Visa Applications
• Overview of H-1B Process and Required Paperwork
• Forms H: For Prospective H-1B Scholars
• Forms H: For Extension of H-1B Status
• Checklist for H-1B Application
• New H-1B "Anti-Fraud" Fee Questions and Answers