Helpful Payroll Tips

One of the most frequently asked and important questions we get is regarding paying your H-2 employees. We’ve compiled some helpful tips to help you take on these payroll challenges and better understand how to stay compliant with pay requirements for these H-2 workers.

Wages

As an H-2 employer, you are subject to either paying the AEWR rate under the H-2A program or your prevailing wage under the H-2B program. This is the minimum wage for these employees, and you may not fall below this rate at any point during the job contract.

Deductions

Unauthorized deductions are prohibited. The only deductions an employer is allowed to take are lawful deductions which include:

· Federal, state, and local income taxes

· Social Security and Medicare (H-2B only)

· FUTA/SUTA (Federal/State Unemployment Tax) or if applicable

· Court-ordered deductions

Deductions that are voluntary are allowed. These would include:

· Union dues (if applicable)

· Health insurance premiums (optional)

· Voluntary room/board (H-2B only)

These deductions must not result in the worker earning below the required wage rate.

Payroll

Running the payroll for an H-2 employee is like regular U.S employees, but includes a few extra steps:

· Collect form I-9

· Obtain an SSN for each worker

· Complete form W-4

· Track and document all hours worked

· Pay wages at least bi-weekly or according to state law

· Include all legally required benefits and OT pay if applicable

Year-End Reporting

Year-end reporting works similarly to your U.S employees. W-2 forms should be issued to all H-2 workers for tax filings.

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WHD FAQ Sheets

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Published by

Labor Consultants International

Helpful Payroll Tips