Moving to the United States: Relocation Guide

Your talent may want to move to the US with family members based on their individual situation. There are several options to do this depending on the type of visa they are acquiring. 

H1-B visa: 

• Spouses and Children: Spouses and unmarried children under 21 years old are eligible for H-4 status as dependents of H-1B visa holders.​
• Employment Authorization for H-4 Spouses: H-4 spouses are generally not authorized to work in the U.S. However, they may apply for an Employment Authorization Document (EAD) if the H-1B principal has reached certain milestones in the green card process, such as the approval of an I-140 Immigrant Petition. It's important to note that processing times for H-4 EAD applications can vary, and recent reports indicate potential delays in processing dependent status extensions and work permit applications.
• Study: H-4 dependents are generally eligible to study in the U.S. without the need for a separate student visa.

E-1 and E-2 Visas:

• Spouses and Children: Spouses and unmarried children under 21 years old are eligible for derivative E-1 or E-2 status.​
• Employment Authorization for E-1/E-2 Spouses: As of January 2022, E-1 and E-2 spouses are considered employment authorized incident to status, meaning they are authorized to work upon entry to the U.S. without needing to apply separately for an EAD. They should be issued an I-94 with a specific code (E-1S or E-2S) indicating their work authorization.
• Children: While children can accompany the E-1 or E-2 visa holder, they are not permitted to work in the U.S. under this status.

L1 visa:

• Spouses and Children: Spouses and unmarried children under 21 years old are eligible for L-2 status as dependents of L-1 visa holders.​
• Employment Authorization for L-2 Spouses: Similar to E visa spouses, L-2 spouses are considered employment authorized incident to status as of January 2022. They should receive an I-94 with the code L-2S, which serves as proof of their work authorization.
• Children: L-2 children are not permitted to work in the U.S.

Green Card:

• Family Sponsorship: When an employee applies for a green card, their spouse and unmarried children under 21 can apply as dependents. While the employer's petition is for the employee, the employee's family members are included in the process and can obtain permanent residency concurrently.
• When your employee is informed by the authorities that they can apply for a green card, their spouse and unmarried children under 21 can apply as dependents at the same time.

If your employees are relocating to the United States, obtaining a Social Security Number (SSN) is an essential step, especially if they  plan to work or engage in financial transactions.

Here's a guide on how to get the SSN:

Eligibility: Generally your employees must have authorization to work in the United States. This typically includes US citizens, permanent residents (or green-card holders), and individuals with certain types of work visas. In some cases, non-citizens might also be eligible for purposes such as receiving government benefits or filing taxes. 

Necessary documents: 

• Identity documents, such as valid passport, birth certificate, or immigration document; 
• Work authorization document: Evidence of work authorization, such as an employment authorization document (EAD) or visa documentation;
• Completed application form: A filled out Form SS-5, which is available on the Social Security Administration (SSA) website or at your local SSA office.

Visiting the SSA office: You can find the nearest SSA office using their office locator tool on their website. Scheduling an appointment isn’t always required, but it’s recommended to avoid waiting times. At the SSA office, your employee would bring all necessary documents, submit their application form, and may have their photograph taken for their SSN card. 

Receiving the SSN card: After the application is processed, the SSN card will reach your employees by mail within a few weeks. The SSN remains the same throughout their lifetime, even if their immigration status changes.

Understanding taxes and the Internal Revenue Service (IRS) is crucial for individuals relocating to the United States. Here's a guide to navigate the tax system:

Determine Tax Filing Status and Year:

• Residency Status: Individuals are classified as either resident aliens or nonresident aliens for tax purposes. Resident aliens are taxed on their worldwide income, while nonresident aliens are taxed only on their U.S.-sourced income. Residency status is determined by the Green Card Test or the Substantial Presence Test. The U.S. tax year runs from January 1 to December 31.

Obtaining a Tax Identification Number:

• Social Security Number (SSN): Individuals eligible for employment in the U.S. should obtain an SSN, which serves as their tax identification number.​
• Individual Taxpayer Identification Number (ITIN): For those not eligible for an SSN but required to file taxes, an ITIN can be obtained by submitting Form W-7 along with the necessary documentation. Applications can be made by mail, through an IRS-authorized Acceptance Agent, or at designated IRS Taxpayer Assistance Centers.

Understanding Tax Obligations:

• Federal Income Tax: Resident aliens must report and pay federal income tax on their worldwide income. Nonresident aliens are required to file Form 1040-NR to report U.S.-sourced income. ​
• State and Local Taxes: Tax obligations at the state and local levels vary depending on the jurisdiction of residence. It's essential to consult the specific tax agencies of the state and locality for detailed information.​
• Employment Taxes: Employers are responsible for withholding federal income tax, Social Security, and Medicare taxes from employees' wages. For 2025, the Social Security tax rate is 6.2% for both employers and employees, applicable up to the wage base limit of $176,100. The Medicare tax rate remains at 1.45%, with no wage base limit.

Filing Tax Returns:

• Determine Filing Status: Filing status options include Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er). Selecting the correct status is crucial, as it affects tax rates and eligibility for certain deductions and credits.
• Gather Necessary Documents: Essential documents include income statements (e.g., W-2s, 1099s), records of deductions and credits, and any other pertinent tax-related information.​
• File Tax Return: Taxpayers can file electronically using the IRS's e-file system or submit a paper return. Electronic filing is recommended for faster processing and quicker refunds. The IRS has also introduced Direct File, a free online tax filing system available in participating states.
• Pay Any Tax Owed: If taxes are owed, payments can be made online, by mail, or through an installment agreement with the IRS. It's important to pay any owed taxes by the due date to avoid penalties and interest.

Navigating the healthcare system and understanding insurance options can be daunting for individuals relocating to the United States. Here's a guide to help you understand healthcare and insurance in the US:

Employer-Sponsored Insurance:

• Many employers offer health insurance as part of their benefits package, typically covering a portion of the premium. Employees may have options for individual or family coverage.
• It's advisable for employees to review the specifics of their employer's plan during the open enrollment period, which usually occurs annually.

Individual Health Insurance:

• Individuals without access to employer-sponsored insurance can purchase plans through the Health Insurance Marketplace or directly from insurance companies.
• The Open Enrollment Period for 2025 coverage runs from November 1, 2024, to January 15, 2025. Some states may have different enrollment periods; it's essential to check your state's specific dates. Outside of this period, individuals may enroll if they qualify for a Special Enrollment Period due to life events like marriage, birth of a child, or loss of other coverage.

Government Programs:

• Medicare: Provides health coverage for individuals aged 65 and older, and certain younger individuals with disabilities.​
• Medicaid: Offers health coverage to eligible low-income individuals and families. Eligibility varies by state, and some states have expanded Medicaid under the Affordable Care Act. Applications for Medicaid can be submitted at any time of the year.

COBRA Coverage:

• The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows eligible employees and their dependents to continue their employer-sponsored health insurance after experiencing qualifying events such as job loss, reduction in work hours, or other life events.
• COBRA coverage can last up to 18 months in most cases, and up to 36 months in certain circumstances (e.g., divorce or death of the covered employee).
• Beneficiaries are typically required to pay the full premium plus a 2% administrative fee. It's important to note that COBRA coverage can be more expensive than other options since the employer no longer subsidizes the premium.