employer handbook - Council on International Educational Exchange

<strong>employer</strong>
<strong>handbook</strong>
Updated Summer 2008
Work & Travel USA

Table of Contents
CIEE 3
Hiring 4
Pre-Arrival 6
In-Country 8
Insurance 10
Social Security & Taxes 12
Return Home 17
Work & Travel USA 1

Dear Employer,
Thank you for your decision to become a host <strong>employer</strong> for our Work & Travel
USA program. Your participation in this program continues a rich tradition of US
<strong>employer</strong>s who have capitalized on a unique opportunity to bring an international
dimension to their workplace while providing a life-changing experience
to foreign students.
While the benefits of contributing to greater international understanding should
not be overlooked, you will also likely find that these programs make good business
sense. Whether by solving your annual seasonal staffing dilemmas or by
tapping into the mindset of these global employees, our program offers benefits
for multi-million dollar corporations and sole proprietorships alike.
In the three-plus decades that CIEE has been running international work exchanges,
we have learned that the success of these programs depends on a
triangle of goodwill between <strong>employer</strong>s, participants, and CIEE staff. CIEE is
fully committed to meeting our end of this bargain by dedicating ourselves to
addressing both your needs and those of your international workers at all stages
in the exchange process.
This <strong>handbook</strong> is one tool that CIEE provides to assist you with any questions
that may arise while you have our students in your employ. It contains background
and details on the most important topics you will be dealing with over
the coming months.
Throughout the <strong>handbook</strong>, you will be directed to contact our Employer Services
and Support departments with any questions you might have. Please take
us up on this offer. We are here for you and are happy to help in any way that
we can.
Regards,
Phil Simon
Vice President
CIEE Employer Services
About CIEE
Established in 1947, the <strong>Council</strong> on
International Educational Exchange
(CIEE) is a world-leader in cultural exchange
services. Over the years, we
have become experts in international
student work exchange programs,
connecting thousands of <strong>employer</strong>s
and hundreds of thousands of satisfied
participants. All have benefited from
CIEE’s range of services.
This year alone, we will help more than
5,000 <strong>employer</strong>s with their seasonal
hiring needs, and sponsor more than
34,000 students on their cultural and
work exchange experiences. CIEE facilitates
these exchanges in our capacity
as a designated sponsor organization
as certified by the US Department
of State.
We are devoted to helping people
around the world to gain understanding,
acquire knowledge and develop
skills for living in a globally interdependent
and culturally diverse world.
How CIEE Can Help
Your Business
CIEE’s work exchange programs can
benefit your business in many ways.
Just consider the following advantages
of hiring international workers through
CIEE:
• Overseas workers can help to serve
your customers better. Our Work &
Travel USA participants are all fulltime
university students who have
all been screened for their English
ability. At the same time, these par-
ticipants speak one, if not several
foreign languages and bring with
them a global perspective that can
be refreshing. If your business caters
to international customers (or even
if it doesn’t), having workers with an
expanded world view can be a real
plus.
• Our participants are highly dedicated
to their program and in turn
to their <strong>employer</strong>s. The chance to
work in the United States is often
a once-in-a-lifetime opportunity for
these participants, and the special
nature of this work exchange often
shows in the students’ enthusiasm
and willingness to work.
• Your US workforce will benefit from
the experience as well. By working
closely with international participants
for several months each year,
your American employees will learn
about foreign cultures and gain a
new perspective on their jobs by
seeing things from another vantage
point.
• CIEE handles the paperwork necessary
to allow participants to apply
for their US visa. Our experience
as a State Department-designated
sponsor means that you can leave
the details to us and instead focus
on your business.
• CIEE provides comprehensive support
services to both <strong>employer</strong>s and
participants. You may access our
Support Team at any time before,
during, and after your workers’ stay
for any assistance you might need.
Through the years, some <strong>employer</strong>s
have asked why they should work with
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3

a sponsor such as CIEE instead of running
the hiring process on their own.
We strongly believe that using our
services helps to simplify the process
and removes the confusion in hiring
international students. Over 30 years
of experience running work exchange
programs has shown us what to do and
not to do. Partnering with CIEE through
all stages of the hiring process allows
you to benefit from the lessons we have
learned from season after season.
How to Contact Us/
Useful Resources
Contacting CIEE
CIEE has skilled support staff on hand
to answer both <strong>employer</strong>s’ and participants’
questions. The following contact
numbers have been provided as a
guideline for whom to contact regarding
your particular question or issue.
Support Line, and In Case of
Emergency
Participants or <strong>employer</strong>s with
general questions should contact
our Customer Service Center at
888-COUNCIL (888-268-6245) between
9:00 a.m. and 5:00 p.m. EST, Monday
through Friday, or send an email to
contact@ciee.org. CIEE staff is always
available to respond to emergency calls
outside of business hours.
From the day after Memorial Day
through Labor Day weekend the Customer
Service Center hours are expanded
to 8:00 a.m. to 7:00 p.m. EST,
Monday through Friday, and Saturdays
from 9:00 a.m. to 5:00 p.m. CIEE staff
will respond to emergency calls outside
of business hours.
Hiring Assistance
If you think you will need additional
students either now or in the future,
or need help with the hiring process,
please contact Employer Services at
866-609-CIEE and ask to speak with
an Account Manager, Monday through
Friday, 9:00 a.m. – 5:00 p.m. EST, or
email us at esteam@ciee.org.
Online Resources
We make it easy for you to access
a wealth of information online at
www.ciee.org/hire.
Participant Recruitment
and Hiring Process
Application Process
Long before your international workers
arrive at your company, they will
have been entered into an application
process designed to demonstrate to
CIEE that they were both motivated
and prepared for this adventure. Most
participants learn of our Work & Travel
USA program either from their family
and friends or through campus presentations
hosted at universities around
the globe.
Once a prospective participant decides
that one of our programs is right for
them, they request an application from
their local CIEE office or partner agent.
The application process includes an
assessment of the participant’s English
ability by their language instructor,
sign-off from a university official,
in-person or telephone-based interviews,
and a series of written questions
designed to ascertain the individual’s
readiness for a work exchange experi-
ence. In accordance with US State Department
regulations, participants are
also required to demonstrate proof of
sufficient financial resources (through
either US wages or personal funds)
to support themselves during their
stay. Students who do not have prearranged
jobs are expected to bring
at least $950. Students who do have
pre-arranged jobs they are expected
to bring at least $475.
These materials, along with the requisite
paperwork from the US host <strong>employer</strong>
(covered in the Hiring Process
section below), comprise the application
package for participants on the
Work & Travel USA program.
The Hiring Process
Hiring international workers can be a
highly rewarding experience. CIEE
has years of experience administering
and assisting with the DS-2019 (Certificate
of Eligibility for Exchange Visitor
Status) Form and J-1 exchange visitor
visa application process. These materials
allow a participant to work in the
United States for up to four months on
the Work & Travel USA program.
CIEE offers multiple channels for you
to fulfill your seasonal hiring needs.
Available for spring, summer and
winter peak seasons, international
university students can fill most gaps
not met through your local hiring efforts.
Furthermore, these students can
often work later in the season than
their American counterparts, offering
you full coverage during your busy
months.
Depending on your needs, you can
travel on one of our CIEE Road Shows
or utilize CIEE Recruit or CIEE Direct.
All of these services will make the hiring
process easier for you and the participating
student.
About CIEE Road Show: CIEE organizes
multi-stop international Road
Shows throughout the year for US
<strong>employer</strong>s to hire their spring, summer
or winter seasonal staff in person.
Employers traveling on Road Show are
usually looking to hire in excess of 50
students.
About CIEE Recruit: This service
puts CIEE to work on your behalf.
A CIEE staff member will interview students
face-to-face and hire them for
you based on your selection criteria. If
you plan to hire several students, we
recommend that you utilize the CIEE
Recruit service.
About CIEE Direct: If you prefer to
conduct your search independently,
you can hire students through our online
jobs database. You can edit job
details, review resumes and hire from
your desktop.
CIEE is making more and more use of
technology to enable our face-to-face
interview services. In several cases, we
are replacing overseas travel to hiring
events with webcam interviews – making
the program accessible to more
students and getting faster results for
<strong>employer</strong>s.
If you have questions about eligibility
for any of these services, please contact
an Account Manager at 866-609-
CIEE, or email us at esteam@ciee.org.
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5

Steps to Take Before
Your Workers Arrive
Communicating Pertinent
Information To Your Participants
Setting student expectations correctly
is essential. Many <strong>employer</strong>s pass along
information to their hired workers prior
to their arrival in the US. Such information
could range from workplace rules
and uniform requirements to details
on housing to local area information
and transportation instructions. Some
<strong>employer</strong>s even send employee manuals
or put together newsletters to help
brief their arriving participants. Whatever
method you use, CIEE recommends
that you provide this advance
information because it allows participants
to prepare accordingly. Email is
usually the best way to communicate
with participants before they arrive in
the US.
Housing
If you do not include housing in your
offer to the students you hire, past
experience has shown that pointing
participants in the right direction, even
passing along “For Rent” sections
from newspapers or simply having a
relationship with a realtor, greatly eases
the transition to living in a new country.
Participants who can quickly settle
into a home base will make better workers
from the beginning. We recommend
that you provide this advice to participants
while they are still in their home
country so that they can get a jump-start
on their housing plans.
Participants are generally fairly flexible
regarding their housing situation. Past
housing options for Work & Travel USA
participants have included apartments,
shared houses, hostels, long-term motel
rentals, rooms in private homes, and
volunteer host families. Any specific
leads or general ideas you can provide
through your contacts within your area
would be of great benefit. Many web
sites offer services that may also prove
useful for your international workers in
their search for housing.
Transportation to Work
Your international staff will probably
take some time to become accustomed
to transportation in the US.
Please take the time to advise them
on the safest and best ways to travel
to work. For example, if they are traveling
during the hours of darkness, tell
them about the safest way to travel. If
they are cycling, please remind them
to wear a helmet, pick the best routes,
and use lights when necessary.
CIEE Orientations
A l l o f o u r Wo r k & Tr a v e l U S A
participants are required go through
an orientation.
Orientations cover:
• Program Regulations and Sponsorship
• Working and living in the United
States
• Health and Safety
• Travel Tips
The First Few Days
SEVIS Regulatory Requirements
All participants on J-1 exchange visas
are required to register their whereabouts
electronically with the Department
of Homeland Security (DHS)
through SEVIS – the Student and Exchange
Visitor Information System.
This requirement is extremely important
since students will be sent home
if they fail to comply.
Participants have two primary responsibilities
within SEVIS:
1. Within 20 days of the program
start date printed on their DS-
2019 Form, they must confirm
with CIEE that they have begun
their work exchange program
and also provide their US address
(PO boxes aren’t permitted).
2. Within 10 days of changing
their home address throughout
their stay, they must provide
CIEE with this new address
information.
CIEE has set up a web site, www.mysevis.com,
for participants to use to give
us this information, which we will then
upload into the US government SE-
VIS system. Allowing your participants
to register online at your company (if
this option is available) would help to
guarantee that these requirements
are being met. Also, participants are
given postage-paid, pre-addressed
postcards as another option for them
to submit their details to us. A third
option is for them to contact CIEE at
888-COUNCIL (888-268-6245) or via
e-mail at contact@ciee.org to provide
the required information.
You can also help to ensure that your
participants are adhering to these
requirements by:
1. Reminding participants of the
importance of confirming their
program start and updating their
addresses as necessary.
2. Notifying CIEE of any students
who do not arrive as scheduled.
3. Contacting CIEE if a participant
leaves work before their scheduled
end date.
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7

Adjusting to Life
in the USA
Adjusting to a new culture and way of
life will be both an exciting and challenging
task for your international
workers. Your workers should not be
surprised to experience some highs
and lows during their time in the US.
They have taken on an adventure of a
lifetime and moved to a new environment,
which may seem strange and
difficult at times. At the same time,
these cultural differences are often the
reason that we all love to travel – to
experience the unknown!
While CIEE does not expect you to
serve as a counselor for participants,
we thought it would be helpful for you
to have some basic information that
may prove valuable to your workers
who may be experiencing feelings of
homesickness or culture shock.
Stages of Cultural Adjustment
While everyone responds differently
when adjusting to a new culture, there
are typically three stages that most
people go through.
1. Participants will probably experience
an initial period of excitement
and happiness, due to new things
around them. They will be constantly
reminded that they are in a
new culture and are many miles
from home.
2. As participants adjust to the
routine of daily life, that initial
sense of adventure will wear off. They
may even find that their new life in
the US can be quite ordinary and
dull at times – just like at home!
During this phase, they may start
to miss their friends and families at
home – wishing things in the US
were more similar to their home
country. They may find it hard to
keep a positive attitude and to
keep up with their routines. They
may be tempted to withdraw
from people around them and
even simple things may seem like
an ordeal. At this point, it may be
helpful to remind your participants
that this phase doesn’t last too long.
3. The second stage should soon give
way to the third and most rewarding
phase – their true adjustment
to American culture. Once the
values and characteristics of people
in the US become more familiar to
your international workers, day to
day life for them will become
easier. They will find it easier to
immerse themselves in American
life and they will begin to
experience the culture in a way that
would never be possible if they
were just tourists traveling for a few
weeks.
If you notice one of your international
workers seeming to struggle through
these stages of cultural adjustment,
you may wish to recommend the
following “survival skills”:
• Stay positive
• Give yourself a chance
• Try not to withdraw from your American
friends, co-workers, or <strong>employer</strong>.
Make a special effort to have fun
and most importantly, remember all
of the reasons that brought you to
the US in the first place.
• Be open and friendly, and people
will respond likewise
• Maintain a sense of humor and an
open mind. Keep in mind that even
the most extraordinary experience
will make an entertaining story
at home that is sure to make your
family, friends, and even you, laugh
someday!
For some participants, these basic tips
may not be adequate to help them
get through this adjustment period.
If you have any more serious concerns
about the welfare of your workers,
please direct these participants
to contact CIEE’s Customer Service
Center at 888-COUNCIL (888-268-6245)
or via email at contact@ciee.org. Also,
please do not hesitate to contact us
yourself if you feel that one of your
workers needs our assistance.
Account Support for CIEE
Employers
If you have hired your students using
a CIEE service (CIEE Road Show, CIEE
Recruit or CIEE Direct), we offer you an
online support service. Please follow
this link to report any non-emergency
situations: http://www.ciee.org/hire/
support/
Procedures for Changing
Employers/Hiring
Participants for a
Second Job
Participants must receive permission
from CIEE, in the form of a letter, before
changing <strong>employer</strong>s. This policy
helps us better regulate where each
participant is working, as well as pro-
viding more assurance to <strong>employer</strong>s
that participants will meet their agreed
upon employment obligations.
If you are looking to hire a student
who is changing <strong>employer</strong>s or seeking
a second job, direct them to contact
CIEE to secure permission authorizing
them to work for you as a second
<strong>employer</strong>. This process will protect the
interest of the original <strong>employer</strong> and
make sure that both <strong>employer</strong>s, the
participant, and CIEE are in agreement
with the new situation. The original
<strong>employer</strong>’s (or CIEE’s) name will remain
on the DS-2019 form.
If a student leaves your company
to look for another job without your
consent, please contact CIEE as soon
as possible at 888-COUNCIL (888-268-
6245) and we will address the situation.
Staying in Touch with
Your Workers
One of the most rewarding aspects of
hiring international workers is the opportunity
to build a worldwide network
of acquaintances. With email, keeping
in touch with people in all corners of
the world is easy to do. Be sure to exchange
email addresses and even telephone
numbers with your international
workers as their time with you ends.
You will be amazed at how enjoyable
it can be to keep track of how your
workers’ lives unfold. And, you may
even end up with a place to stay the
next time you’re in Bangkok, Warsaw,
or Lima!
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9

Regulatory Updates/
Issues on the Horizon
In recent years, international exchange
programs have undergone a transformation
in response to new regulations
brought about by the changing world in
which we live. We expect this pattern of
change to continue for the foreseeable
future and the work exchange programs
you are currently involved with may look
somewhat different the next time you
look to hire workers from abroad.
CIEE maintains close ties with the State
Department (both in Washington, DC
and its embassies overseas), Department
of Homeland Security, Social Security
Administration, and other agencies
involved with international exchange
programs. We have played an active role
in the past in contributing to the regulatory
process in such a way as to ensure
quality experiences for <strong>employer</strong>s and
participants. We remain committed to
this effort and pledge to keep you informed
as new developments unfold.
Special Section: Insurance
The US Code of Federal Regulations
(22 CFR 62.14) requires all exchange
visitors to have sufficient insurance that
covers them at a certain level for sicknesses
or accidents during their participation
in the exchange program.
CIEE provides insurance coverage in
excess of the level required by federal
regulations. All participants are covered
under a group policy with CIEE.
All claims will be processed by
Chickering Claims Administrators
and should be sent to:
Chickering Claims Administrators
P.O. Box 15708
Boston, MA 02215-0014
Benefits of CIEE’s Insurance Policy
The insurance policy provides extensive
coverage against typical risks
to international travelers, such as
accidents, sudden illnesses and more.
Since it is a travel insurance policy for
a temporary stay abroad, some limitations
and exclusions apply. As a general
rule, medical emergencies and
most sicknesses are covered whereas
routine examinations, vaccinations,
regular dental treatment or vision services
are excluded.
As is common with other travel insurance
policies, there is no coverage for
pre-existing conditions. If participants
are suffering from a chronic illness
(such as asthma or diabetes), CIEE advises
them to ensure that their health
insurance at home provides coverage
for any costs arising from those illnesses.
Coverage for dental treatment
is strictly limited to emergencies. CIEE
advises participants to visit their dentist
at home before they start their exchange
program in order to make sure
that their teeth are in good condition.
Emergency Room Treatment
The insurance policy covers Emergency
Room visits only in medical emergency
situations. A medical emergency is a
situation where the participant’s life or
health is in jeopardy. Don’t refer participants
to the emergency room for convenience
or for any other reason than a
serious medical emergency. Emergency
rooms are very expensive. If participants
use an Emergency Room for non-emergency
situations, the insurance may not
cover all of the costs and they may be
responsible for payment. If participants
need assistance in locating a doctor
for a regular illness, please call CIEE at
888-COUNCIL (888-268-6245) or go to
www.ciee.org/insurance and click on
the DocFind ® icon.
How to Locate Doctors or
Hospitals in the US
CIEE suggests that all <strong>employer</strong>s may
want to become familiar with medical
providers in their areas that are part
of the Preferred Provider Network
through Aetna. By knowing how to
direct participants to a Preferred Provider
you can help them save on out of
pocket expenses.
If a student needs to visit a doctor or
a hospital in the US, they need to ensure
that this doctor/hospital is listed
within the Preferred Provider Network
through Aetna. This network has a contract
with the insurance company and
their providers are offering medical
services at reasonable costs. Aetna’s
network has over 672,000 medical providers
that participants can choose
from nationwide and is one of the largest
networks in the US. If students use
medical providers who are not listed
with the Preferred Provider Network
through Aetna, then they run risk of
being responsible for higher medical
bills. Employers and Participants can
locate a medical provider in the area
where they are staying by calling CIEE
at 888-COUNCIL (888-268-6245) or by
going online to www.ciee.org/insurance
and clicking on the link titled
Locating a Doctor on Docfind ® .
Co-pays
When a participant seeks medical
treatment, they will be responsible to
pay a co-pay at the time of their visit.
The co-pay amounts for this plan are:
Outpatient/Emergency
Room $50 per visit
Inpatient $100 per visit
For prescription drugs participants will
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need to pay the full price at the pharmacy
and then send their receipts to
Chickering Claims Administrators to
process a reimbursement. The co-pay
for prescriptions on this plan is $20 per
30 days supply.
Date of Insurance Coverage
CIEE provides participants with a document
called “Confirmation of Insurance
Coverage.” This document is a
proof of insurance, issued specifically
to an individual participant and provides
a brief summary of the insurance
coverage along with the participant’s
specific dates of coverage. The insurance
coverage expires on the expiration
date stated on the “Confirmation
of Insurance Coverage” document or
when the participant withdraws from
the program, or when the participant
is dismissed from the program, whichever
comes first.
The insurance policy also covers our
participants for short trips to neighboring
countries (e.g. to Canada, Mexico
or the Caribbean), as long as they are
actively enrolled in a CIEE program.
Trips to the participant’s home country
are NOT covered.
Insurance Website
Detailed information on insurance along
with a summary of the benefits can be
found at www.ciee.org/insurance. CIEE
advises participants to read the insurance
website thoroughly before departure
in order to familiarize themselves
with insurance benefits, exclusions and
claim procedures. Insurance procedures
are also covered during CIEE orientations.
In addition, participants also receive
a Health & Safety pocket guide
that includes an insurance ID card. This
card should be shown to the medical
provider when they seek medical attention.
Attached to this card are the benefits,
exclusions and general guidelines
to their insurance policy. CIEE encourages
participants to carry this card with
them at all times.
Insurance Support from CIEE
CIEE staff is available to answer any
questions or provide assistance regarding
insurance for any CIEE participant
or <strong>employer</strong>.
For questions about insurance, finding
a doctor, or how to file a claim,
visit the CIEE website at www.
ciee.org/insurance or call CIEE at
888-COUNCIL (888-268-6245).
If a participant requires hospitalization,
serious medical treatment, or has an
accident, please notify the CIEE insurance
department immediately.
Special Section:
Social Security and Taxes
In some respects, Work & Travel USA
participants are the same as any US
worker you might hire. There are, however,
some differences that you should
be aware of. This section of the publication
is designed to provide clarification
around Social Security and tax issues.
Social Security and Payroll
Many participants will arrive at your
workplace without having applied for
a Social Security number. To obtain
a Social Security number, students
must complete an Application for a
Social Security card (Form SS-5). To
find the nearest Social Security office,
look in the telephone book under
“Social Security Administration,” call
toll-free 800-772-1213, or visit the
Social Security website at www.ssa.gov.
Please note that participants should
complete their SEVIS registration at
least two days before applying for a
Social Security card.
Although students are required to have
a Social Security number, they are allowed
to work before they have received
one as long as they have applied for the
number and have a receipt of their application.
The SSA provides the following
advice (visit http://www.ssa.gov/<strong>employer</strong>/
for more details): Provided that
participants apply for a Social Security
number within seven days of commencing
work, they are in compliance with
the law and may work and receive paychecks.
Participants can demonstrate
that they have applied for their Social
Security Number either by (1) showing
a copy of the application form that was
submitted, or (2) showing any acknowledgement
of receipt provided by the
SSA, or (3) showing a statement signed
by the employee. CIEE’s attorneys have
carefully reviewed the laws involving
workplace rules and Social Security
Numbers, and have advised us on the
above process. For your reference, we
have included on page 17 the full text
of the Legal Opinion Letter we received
from our attorneys in this regard.
Payroll Issues for Pending Social
Security Numbers
The Social Security Administration provides
the following advice as of September
2006 (www.ssa.gov/<strong>employer</strong>/hiring.
htm) for how to handle participants who
do not have Social Security Numbers:
To strengthen homeland security in
the aftermath of September 11th,
Social Security has taken extra steps
to ensure the integrity of Social Security
numbers. The changes to the
way Social Security assigns numbers
and issues cards may cause a delay of
several weeks or months in receiving
a number. This fact sheet addresses
<strong>employer</strong> responsibilities when hiring
foreign workers (e.g., students
or cultural exchange visitors) who
have applied for and are waiting to
receive a Social Security number and
card. Note that the employee may
work while the Social Security number
application is being processed.
(1) What causes delays when foreign
workers apply for Social Security numbers?
When foreign workers apply for Social
Security numbers, SSA verifies their
documents directly with the Department
of Homeland Security (DHS).
Most applications are verified immediately,
but there can be delays. Social
Security understands that this process
may affect companies who hire foreign
workers, but in the interest of homeland
security, direct verification from DHS
is vital to ensuring the integrity of the
Social Security number.
(2) What are an <strong>employer</strong>’s responsibilities
when hiring foreign workers who
don’t have Social Security numbers?
Advise workers that they are required to
apply for a Social Security number and
card. If a worker applied for but has not
yet received a Social Security number,
you should get the following information
as complete as possible: The worker’s
full name, address, date of birth,
place of birth, father’s full name, mother’s
full maiden name, gender and the date he
or she applied for a Social Security number.
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13

(3) What if a participant is late filing their
Social Security number application and
the <strong>employer</strong> is doubtful the number
will be issued before the participant
goes home?
In the event a Work & Travel USA participant
is late filing his or her Social Security
application, it is recommended that
the participant file the standard Form
SS-5 and request that he / she wants to
have the <strong>employer</strong> notified when the Social
Security number is issued. The participant
will complete a Form SSA-7028
(Notification of Social Security Number
to Third Party) for this purpose. The participant
should have the name, address,
and phone number for his / her <strong>employer</strong>
at the time the application is filed.
The Form SSA-7028 is used to provide
the Social Security number directly to the
<strong>employer</strong> once it is issued. The form is
completed by the local office where the
participant applies for the Social Security
number. The form is not online as it is
only used by Social Security offices and
is not intended for public use.
Employers should ask participants to
fill out a Form SSA-7028 only in cases
where it is reasonably doubtful that the
participant will not be able to give their
Social Security number to his / her <strong>employer</strong>
before returning home (for example,
if the participant’s Work & Travel
USA program is shortened for any reason,
or the student had to replace his /
her I-94 in order to be able to apply for
Social Security). Under normal circumstances
the Social Security Administration
encourages students to only fill out
the standard Form SS-5 and rely on the
established application process to receive
their Social Security number.
Please note that Social Security will not
issue a Social Security number within 14
days of the participant’s DS-2019 end
date. If for any reason a number has not
been issued before that time, no number
will be issued.
(4) What if the participant was never
assigned a Social Security number or
hasn’t reported their Social Security
number to the <strong>employer</strong> when wage
reports (Forms W-2/W-3) are due to the
Social Security Administration?
If an <strong>employer</strong> does not receive a participant’s
Social Security number before
wage reports are due, the Social Security
Administration recommends that the
<strong>employer</strong> follows the IRS instructions for
how to file a W-2/W-3 when they do not
know the Social Security number.
For more information on this topic
please visit http://www.ssa.gov/<strong>employer</strong>/.
See also “Employer Responsibilities
When Hiring Foreign Workers” at
http://www.socialsecurity.gov/<strong>employer</strong>/hiring.htm.
There is also information
on the IRS website. See especially,
“Delays in Issuing SSNs to Aliens
by the Social Security Administration” at
http://www.irs.gov/businesses/small/international/article/0,,id=129227,00.html.
If an <strong>employer</strong> must have the Social Security
number, they can make a formal
written request on company letterhead
to the Social Security Administration that
states the number is needed for wage
reporting purposes. The request must
include the <strong>employer</strong>’s contact details as
well as the participant’s full name, gender,
and date of birth. There must also
be documented proof that the participant
did work for the <strong>employer</strong> in question.
Requests should be made by mail
to the closest local field office.
Cut here and give Form W-4 to your <strong>employer</strong>. Keep the top part for your records.
Employee’s Withholding Allowance Certificate
(5) My foreign worker received his or
her Social Security number after I filed
my wage report. What do I do?
When you receive the worker’s
Social Security number, file Form W-2c
(Corrected Wage and Tax Statement),
to show the worker’s number. Go to
www.ssa.gov/<strong>employer</strong>/how.htm#how
for instructions on how to file a W-2c.
(6) What if the participant’s Social
Security card arrives at the <strong>employer</strong>’s
address after he / she has left the
country?
If the Social Security card arrives after
the participant’s departure, write
“Moved” on the unopened envelope
and place it in the mail. The post office
will return the Social Security card
to the Social Security Administration
for proper disposal. If you require the
Social Security number for your wage
reporting purposes please follow the
directions above.
Taxes
Work & Travel participants are required
to pay some taxes just like any other
taxpayers and are exempt from other
taxes as a nonresident alien.
Work & Travel participants must pay:
• Federal income taxes
• State income taxes
• Local income taxes if applicable
Work & Travel participants do not pay:
• Social Security taxes
• Medicare taxes
• Federal unemployment taxes
In establishing a payroll record for each
of your international workers, please
take care to set them up in this fashion.
The Form W-4: Important
Instructions for Work &
Travel USA Participants
The IRS provides the following
directions as of January 2008 (www.irs.
gov/pub/irs-pdf/p15.pdf) for how to
complete the form W-4:
On the Form W-4 please follow these
steps for all Work & Travel USA participants:
I.) Disregard the Personal Allowances
Worksheet. This section is for US
Citizens only.
II.) On the bottom half of the Form W-4:
a. Box 1: Enter your personal information
including US address as
instructed.
b. Box 2: Enter your Social Security
Number (SSN). If you have not
been issued a SSN but have applied
for one write “Applied For”.
c. Box 3: Check mark or fill in withholding
as “single,” regardless of
actual marital status.
14 <strong>Council</strong> on International Educational Exchange Work & Travel USA
15
Form
W-4
Department of the Treasury
Internal Revenue Service
1
Type or print your first name and middle initial.
Enter your first name
Enter your US address
Enter your US City, State and Zip Code
OMB No. 1545-0074
Whether you are entitled to claim a certain number of allowances or exemption from withholding is
subject to review by the IRS. Your <strong>employer</strong> may be required to send a copy of this form to the IRS.
Last name
2 Your social security number
Home address (number and street or rural route)
City or town, state, and ZIP code
Enter your last name 000 00 0000
3
Single Married Married, but withhold at higher Single rate.
Note. If married, but legally separated, or spouse is a nonresident alien, check the “Single” box.
4 If your last name differs from that shown on your social security card,
check here. You must call 1-800-772-1213 for a replacement card.
5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2) 5 1
6 Additional amount, if any, you want withheld from each paycheck
6 $ NR
7 I claim exemption from withholding for 2008, and I certify that I meet both of the following conditions for exemption.
Last year I had a right to a refund of all federal income tax withheld because I had no tax liability and
This year I expect a refund of all federal income tax withheld because I expect to have no tax liability.
If you meet both conditions, write “Exempt” here
7 Leave Blank
Under penalties of perjury, I declare that I have examined this certificate and to the best of my knowledge and belief, it is true, correct, and complete.
Employee’s signature
(Form is not valid
unless you sign it.) Date
8 Employer’s name and address (Employer: Complete lines 8 and 10 only if sending to the IRS.) 9 Office code (optional) 10 Employer identification number (EIN)
Leave Blank Leave Blank Leave Blank
For Privacy Act and Paperwork Reduction Act Notice, see page 2. Cat. No. 10220Q
Form W-4 (2008)
08

d. Box 4: Leave blank.
e. Box 5: Enter “1”. There are no
exceptions to this.
f. Box 6: Write “NR” to indicate
Nonresident Alien status.
g. Box 7: Leave blank. Nonresidents
cannot claim “Exempt”.
h. Box 8 – 10: Leave blank.
i. Sign and date the form.
Additional Withholdings:
Federal Withholdings for
Work & Travel USA Participants
The Internal Revenue Service has new
procedures for calculating the amount
of federal income tax withholding on
the wages of nonresident aliens like
CIEE sponsored Work & Travel USA
participants. Nonresident aliens are no
longer required to request additional
withholdings in Box 6 on Form W-4.
Instead of this requirement, <strong>employer</strong>s
are required to apply a new procedure.
Under this procedure <strong>employer</strong>s add an
amount to the nonresident participants
wages as described on pages 15-16 of
the IRS Publication 15, Circular E (Re-
vised January 2008 http://www.irs.gov/
pub/irs-pdf/p15.pdf) for calculating the
income tax withholding for each payroll
period. Please note, the amounts added
under this chart are added to wages
solely for calculating income tax withholding.
Chart amounts should not be
included in any box on the employee’s
Form W-2 and does not increase the income
tax liability of the employee.
Example
Following is an example that illustrates
the Additional Withholdings procedure
change. This example uses the
Wage Bracket Method for calculating
federal withholdings and is the most
common method used by <strong>employer</strong>s.
Please be aware that if you use the
Percentage Method for calculating
withholdings CIEE recommends that
you contact the IRS or a tax professional
if you have questions.
NOTE: The table referred to in this example
can be found in the IRS Publication
15, Circular E (Revised January
2008) (http://www.irs.gov/pub/irs-pdf/
p15.pdf) on page 36.
• Work & Travel USA participant earns
$500.00 in one week.
• Employer pays employees on a
weekly basis.
• The <strong>employer</strong> adds $51.00 to the
participant’s wages.
• The taxable amount becomes
$551.00.
• Employer scrolls down the weekly
payroll table and finds the range
the student’s wage falls into.
In this case it is between $550.00
and $560.00
• Employer scrolls across the top
of the payroll table and locates
the column for one withholding
allowance. J-1’s always are allowed
only one allowance.
• Employer finds intersection at
$59.00 and that is the federal tax
withholding.
• Participant’s wages after federal
withholding is:
$500.00 - $59.00 = $441.00
Legal Opinion: J-1 Visa Holders and Social Security
February 13, 2004
Stevan Trooboff
President and Chief Executive Officer
<strong>Council</strong> on International Educational Exchange
Dear Stevan:
• Important: We are now using
the participant’s actual wage at
this step!
• Employer will still need to calculate
applicable state and local taxes.
After Your Workers
Return Home
International participants that worked
at your business during the year will
need a W-2 Form in order to file their
US tax returns. We recommend that
before your workers depart for their
home countries, you confirm with
them the best address to which these
forms should be sent. This extra step
will help to avoid frustration come
next tax season.
CIEE recommends www.taxback.com
for participants who are seeking assistance
with their tax returns.
You have asked me to determine whether J-1 visa holders may commence work
with their <strong>employer</strong>s if they have not yet received a social security number or
card. I am pleased to report that the Internal Revenue Service’s (IRS) regulations
clearly permit such employees to commence working before they have
received, or even applied for, their social security cards from the Social Security
Administration (SSA).
The Federal Insurance Compensation Act (FICA) exempts J-1 visa holders from
paying social security taxes. 26 U.S.C. § 3121(b)(19) (2000). The requirement that
each such employee obtain a social security number is for the <strong>employer</strong>’s re-
16 <strong>Council</strong> on International Educational Exchange Work & Travel USA
17

porting convenience, not because any FICA taxes actually would be due from the
wages earned by the J-1 visa holders.
IRS regulations allow employees to commence working without a social security
card in three common situations. First, an employee may not have applied
for a card, or only recently applied and not yet received a card. In such cases,
an employee may commence work immediately. To begin work, the employee
must complete an Application for a Social Security Card (Form SS-5) and provide
a copy of it to the <strong>employer</strong>. 26 C.F.R. § 31.6011(b)-2(b)(1)(iv) (2003). If, for any
reason, a copy of the Form SS-5 is unavailable, the J-visa holder may provide to
his or her <strong>employer</strong> instead a written, dated statement, signed by the employee.
The statement should include the employee’s full name, address, date and
place of birth, sex, father’s full name, and mother’s full name before marriage.
It should also state whether the employee has previously filed a Form SS-5 and,
if so, the date and place of filing. The employee may commence working after
submitting such a statement to the <strong>employer</strong>. It remains the employee’s responsibility
to submit an application for a card to the SSA within seven (7) days
of commencing employment. 26 C.F.R. § 31.6011(b)-2(a)(2) (2003). No statutory
deadline prevents an employee from continuing to work if the card has not arrived.
The employee’s only obligation, once application for a card has been
made, is to “promptly” show the card to the <strong>employer</strong> upon its receipt.
Second, it may be that an employee has applied for a card, but has not received
it. During processing, the SSA typically provides card applicants with proof that
they have applied for their cards -- either in the form of a receipt, an application
acknowledgment, or an uncertified copy of the application.
The applicant should provide a copy of this proof of application to the <strong>employer</strong>.
26 C.F.R. § 31.6011(b)-2(b)(1)(iii) (2003). Again, once the employee actually
receives a card, it should be shown promptly to the <strong>employer</strong>. 26 C.F.R. §
31.6011(b)-2(b)(2) (2003).
Third, an employee may have received a card, but not have it available to show
to the <strong>employer</strong> on the first day of work. In lieu of presenting the actual card, an
employee who knows the account number may provide it and his or her name
exactly as it appears on the card. 26 C.F.R. § 31.6011(b)-2(b)(1)(ii) (2003).
Occasionally, an <strong>employer</strong> must file W-2 forms with the IRS before the employee
has received a card. In such a case, the <strong>employer</strong> should enter “Applied For”
in the W-2 form field that is provided for entering the social security number.
When the employee receives the card, the employee should promptly show it
to the <strong>employer</strong> and the <strong>employer</strong> should file a Form W-2c, Corrected Wage
and Tax Statement, to update its prior submission with the employee’s social security
number. If the employee started work by presenting proof of application
for a card (e.g. a receipt, an acknowledgment letter, or uncertified copy of the
application), the <strong>employer</strong> should complete the Form W-2 with the name and
address of the employee as shown on the proof of application, together with the
expiration date of the proof of application, and the issuing office address. 26
C.F.R. § 31.6011(b)-2(c)(3)(i) (2003). Where an employee provided the <strong>employer</strong>
with a Form SS-5 or a statement, the <strong>employer</strong> should attach a copy of the form
or statement to the W-2. 26 C.F.R. § 31.6011(b)-2(c)(3)(ii) (2003).
If the employee concludes employment before receiving a card, it is the employee’s
duty to provide promptly the card number along with the employee’s
name to the former <strong>employer</strong> after this information first becomes available to
the employee. 26 C.F.R. § 31.6011(b)-2(b)(2) (2003). An employee may fail to provide
the card number to the <strong>employer</strong>. Mr. Ronald P. Rivelli, Chief, Partnerships,
Trusts, and International Section, Internal Revenue Service, explained that an
<strong>employer</strong> has discharged its duty under the IRS regulations so long as it has
otherwise complied with 26 C.F.R. § 31.6011(b)-2 and has made a request that
the employee supply his social security number and a copy of his social security
card within a reasonable period after receiving such number and card.
The J-1 visa exchange visitor employee will be subject to withholding at the
maximum rate until he or she has provided the <strong>employer</strong> with his or her social
security number.
Thus, under the IRS regulations, an employee with a J-1 visa work authorization
may begin working even though such an employee has not yet received a social
security card, or even applied for one. An <strong>employer</strong> can require an employee
to provide one of the following on the first day of work: (1) the social security
card or number and name exactly as shown on the card; (2) proof of application
for a card in the form of a receipt, application acknowledgment, or uncertified
copy of the application; (3) a copy of a completed Form SS-5; or (4) a statement
including basic personal data. The employee may then start work. Once the card
is received, the employee must promptly provide the card number.
Provided the <strong>employer</strong> has complied with the above, it will have satisfied its
obligations under the IRS regulations for gathering and reporting employee
social security numbers.
Please do not hesitate to contact me with any additional questions you
may have.
Sincerely,
Laura M. Kim
Covington & Burling
1330 Avenue of the Americas
New York, NY 10019
18 <strong>Council</strong> on International Educational Exchange Work & Travel USA
19

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NOTES

www.ciee.org/hire
866-609-CIEE