March 2023: USCIS Issues Guidance on Analyzing Employers’ Ability to Pay Wages

20 Mar

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Update Applicable to:
All employers with immigrant employees.

What happened and what are the details?
On March 15, 2023, the U.S. Citizenship and Immigration Services today issued policy guidance on how we analyze an employer’s ability to pay the proffered wage for immigrant petitions in certain first, second, and third preference employment-based immigrant visa classifications. 

Employers seeking to classify prospective or current employees under the first, second, and third preference employment-based immigrant visa classifications that require a job offer must demonstrate their continuing ability to pay the proffered wage to the beneficiary as of the priority date of the immigrant petition.

The relevant regulation requires the employer to submit annual reports, federal tax returns, or audited financial statements for each available year from the priority date. If the employer has 100 or more workers, USCIS may instead accept a financial officer statement attesting to the employer’s ability to pay the proffered wage. The updated guidance also details various additional evidence employers may submit and explains how USCIS considers any evidence relevant to the employer’s financial strength and the significance of its business activities. Many employers satisfy the ability to pay requirement by submitting payroll records demonstrating that, during the relevant period, they have been paying the employee at least the proffered wage.

The update also adds an appendix containing an overview of common business forms or structures to help officers and stakeholders better understand the types of petitioning entities filing Form I-140, Immigrant Petition for Alien Workers, or Form I-129, Petition for Nonimmigrant Worker. These business forms or structures are also relevant to the new commercial enterprises underlying a Form I-526, Immigrant Petition by Standalone Investor, or Form I-526E, Immigrant Petition by Regional Center Investor. Specifically, the appendix includes information on how different types of businesses are formed, their fundamental characteristics, the various tax forms that each business organization files with the Internal Revenue Service, and basic tax terms.

This guidance, contained in Volume 6 of the Policy Manual, is effective immediately upon publication and applies prospectively to petitions filed on or after that date.

For more information, please see the links below:

Policy Guidance

USCIS News Release

What do employers need to do?
Employers should review the links above for more information on paying wages for immigrant employees.

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