Cost of H1B Sponsorship – Employer & Employee Guide

The cost of H1B sponsorship varies depending on company size, legal fees, and whether premium processing is used. U.S. employers are legally required to pay certain mandatory government filing fees when sponsoring a foreign worker under the H1B visa program.

Understanding the full financial breakdown helps both employers and employees plan properly.

Mandatory Government Filing Fees

The core cost of H1B sponsorship includes several required USCIS filing fees:

  • Form I-129 Base Filing Fee: $460
  • ACWIA Training Fee:
    • $750 (employers with 1–25 employees)
    • $1,500 (employers with 26+ employees)
  • Fraud Prevention and Detection Fee: $500
  • Public Law 114-113 Fee: $4,000 (applies to certain large employers)
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Not all employers are subject to the $4,000 Public Law fee.

Optional Premium Processing Fee

  • Premium Processing (Form I-907): $2,805

This optional fee guarantees USCIS processing within 15 calendar days.

Attorney and Legal Fees

In addition to government charges, the cost of H1B sponsorship often includes legal representation fees, typically ranging from:

  • $1,500 to $3,500 for standard cases
  • Higher for complex or RFEs (Requests for Evidence)

Employers usually cover legal costs for petition preparation.

Total Estimated Cost of H1B Sponsorship

For most employers, the total cost of H1B sponsorship typically ranges between:

  • $4,000 to $7,000 without premium processing
  • $7,000 to $10,000+ with premium processing and additional fees

Costs vary depending on company size and case complexity.

Who Must Pay the Fees?

Under U.S. Department of Labor regulations:

  • Employers must pay mandatory filing fees
  • Employers cannot pass required sponsorship costs to the employee
  • Premium processing may be paid by the employee in certain situations
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Improper fee arrangements may violate labor laws.

Additional Costs Employers Should Consider

  • Recruitment and onboarding expenses
  • Internal HR compliance costs
  • Potential relocation assistance
  • Future green card sponsorship expenses

Long-term immigration planning often increases total costs.

Cost of H1B Sponsorship for Extensions and Transfers

H1B extensions and transfers may involve similar filing fees, though certain fees such as the fraud prevention fee may not apply in all cases.

Legal fees still typically apply for preparation and filing.

Is H1B Sponsorship Worth the Cost?

For many employers, the cost of H1B sponsorship is justified by access to highly skilled global talent, particularly in technology, healthcare, engineering, and research sectors.

Common Mistakes to Avoid

  • Passing mandatory fees to employees
  • Underestimating total legal expenses
  • Failing to account for green card costs
  • Missing filing deadlines

Careful budgeting helps avoid compliance risks.

Frequently Asked Questions

Can an employee pay for H1B sponsorship?

Employees may pay optional premium processing in some cases, but mandatory employer fees cannot legally be passed on.

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Does cost differ for cap-exempt employers?

Yes. Cap-exempt employers may avoid certain lottery-related risks but still pay required filing fees.

How much does green card sponsorship cost after H1B?

Green card sponsorship often adds several thousand dollars in additional legal and filing fees.

Final Thoughts

The cost of H1B sponsorship includes government filing fees, legal expenses, and compliance obligations. Employers must understand mandatory payment responsibilities and budget carefully when hiring foreign professionals.