International Student Payment Options: What You Need To Know

International students often seek part-time employment to support themselves financially while studying abroad. The rules governing their ability to work vary by country and visa type, and students must understand the regulations to maintain their status. In the US, F-1 students may work on-campus, but off-campus work is restricted and requires authorisation. In Australia, international students have the same workplace rights and protections as other employees, but they must have permission to work and a valid visa. Unpaid internships are a complex area, as they may be considered employment by the Department of Labor, requiring work authorisation.

Can international students be paid?

On-campus work: International students can work on-campus for up to 20 hours per week during classes

International students often face strict regulations regarding employment during their studies. In the United States, international students with an F-1 visa status can work on-campus for up to 20 hours per week during classes, and up to 40 hours per week when classes are not in session. This is a popular option for those seeking to earn an income during their studies as it does not require additional work authorisation. However, it is important to note that these positions cannot displace a US citizen or lawful permanent resident (LPR), and students must report their work and obtain a Social Security Number.

On-campus jobs can vary, with positions such as a night desk attendant or a learning centre tutor being common. The latter often requires students to have a strong academic background in the subject they wish to tutor. It is worth noting that some universities may have specific application processes for these roles, such as requiring a recommendation from an academic advisor.

While off-campus work is also an option for international students, it comes with more stringent requirements and limitations. In the US, F-1 students must meet eligibility requirements and obtain official authorisation before taking up off-campus employment. This can include curricular practical training (CPT), which provides experience in the student's field of study, or optional practical training (OPT), which allows work related to the student's major for up to a year before or after graduation.

In Canada, international students can work off-campus without a work permit, provided they meet specific criteria. They must be full-time students, be authorised to work on or off-campus, and not exceed 24 hours of work per week. Self-employed students must also keep track of their working hours to ensure compliance with their study permit conditions.

Off-campus work: Requires eligibility and official authorization, like CPT or OPT

As an international student, you may be eligible for off-campus work in the US, but this requires official authorization and has specific eligibility criteria. The two main pathways to off-campus work authorization are CPT (Curricular Practical Training) and OPT (Optional Practical Training). Both programs allow international students on F-1 visas to gain practical work experience related to their field of study. However, there are important differences between the two.

CPT is a temporary authorization that allows eligible students to work off-campus during their academic program after one full year of full-time study. It is a great option for internships, and some schools offer college credit for CPT internships. CPT requires that the job be related to the student's academic major. It is important to note that 12 months of full-time CPT makes an F-1 student ineligible for OPT before or after graduation.

OPT, on the other hand, can be used for pre-completion or post-completion work authorization. Pre-completion OPT allows students to work off-campus during their academic program, while post-completion OPT is used after graduation. Similar to CPT, OPT requires that the job be related to the student's field of study and that they have completed at least one full academic year. Additionally, students can only work part-time, up to 20 hours per week, while school is in session under the OPT program.

F-1 students can also be eligible for a 24-month STEM OPT extension if they have received a qualifying STEM (Science, Technology, Engineering, and Mathematics) degree. This allows STEM majors to work and stay in the US for up to three years after graduation. To qualify for the STEM OPT extension, the employer must be enrolled in the USCIS E-Verify program, and the student must be working full-time.

The process of obtaining off-campus work authorization starts with the student requesting permission from the Designated School Official (DSO), who will decide if they meet the eligibility criteria. The DSO will then enter the recommendation into the SEVIS system and provide the student with the necessary forms, such as the Form I-20 "Certificate of Eligibility for Nonimmigrant Student Status". The student must include this form as supporting evidence in their application for employment authorization.

F-1 visa: Allows international students to work on- and off-campus with relevant documents

International students in the US on an F-1 visa are allowed to work, but there are strict guidelines. F-1 visa holders can work on-campus and off-campus, but they must adhere to several rules and regulations.

On-campus employment is the most common type of work for international students in the US. Students can work up to 20 hours per week during term time and full-time during holidays and vacations. The work must take place at the school or an educationally affiliated location, and it must directly provide services for students. For instance, a job could be in an on-campus bookstore or cafeteria. Students must maintain valid F-1 status and may not displace a US student. They must also obtain permission from their school's International Student Office before accepting on-campus employment, and they may not be permitted to work during their first semester or year.

There are four sub-categories of off-campus employment: optional practical training (OPT), curricular practical training (CPT), severe economic hardship, and approved international organizations. Off-campus employment is only authorized in cases of severe economic hardship, emergent circumstances as defined by the Department of Homeland Security (DHS), or after the student has completed their first academic year. To gain OPT employment, students must obtain permission from USCIS and their school's International Student Office. They must also receive their Employment Authorization Document (EAD) and have been enrolled for at least a year before starting work. Students can also work with a 'recognized international organization' as long as it is on the official State Department list.

Social Security Number: A 9-digit number required for employment, issued to citizens and eligible non-citizens

International students, scholars, teachers, and researchers may be able to receive income while in the US, but they are still subject to US tax laws. Income that is not taxable due to an income tax treaty must still be reported on a US income tax return, even if no tax is due.

International students are typically considered non-resident aliens for tax purposes and must file tax returns and pay taxes on any income they receive from US sources. This includes wages, scholarships, fellowships, and grants. Additionally, they may be subject to Social Security and Medicare taxes, depending on their country of origin and the specific tax treaty between the US and that country.

To work in the US and receive payment, individuals typically need a Social Security Number (SSN). An SSN is a unique, nine-digit number issued to US citizens, permanent residents, and eligible non-citizens. It is used for tax and employment purposes and is required to work and receive wages in the US. International students on F-1 or M-1 visas are generally not eligible for a Social Security Number but may be eligible for a Social Security Number if they have a job offer and meet other eligibility requirements.

To apply for an SSN as an international student, you must typically have a job or offer of employment and meet certain other requirements, including having a valid visa and work authorization. You will need to complete Form SS-5, Application for a Social Security Card, and provide evidence of your identity, work eligibility, and immigration status. It's important to note that the Social Security Administration does not issue SSNs to individuals who are not authorized to work in the US, so ensuring you understand your visa requirements and work eligibility is crucial before initiating the application process.

Taxes: International students must report income and pay taxes, even if not required by a treaty

International students in the United States are classified as nonresident aliens for tax purposes and are subject to federal and state income tax withholding by the university, even if they are exempt due to a tax treaty. This means that international students must report their income and pay taxes, even if they are not required to do so by a treaty.

To claim a tax treaty exemption, international students must complete and submit specific forms, such as Form 8233, to the Internal Revenue Service (IRS). This form must be submitted annually and allows students to claim an exemption from withholding tax on compensation for services that are exempt from U.S. tax under a tax treaty. Additionally, students must attach a country-specific statement that outlines the terms of the treaty.

It's important to note that even if an income tax treaty allows an exemption from withholding, international students should still complete a Form W-4, Employee's Withholding Allowance Certificate. This form is used to determine the amount of tax to be withheld from wages and helps ensure that the correct amount of tax is paid throughout the year. International students must follow a different set of instructions when completing the Form W-4, which includes checking the "Single" marital box on Line 3, regardless of their actual marital status.

At the end of the year, non-resident alien students are responsible for reporting their exempt and taxable payments and remitting any tax due with their personal income tax return. They must use Forms 1040NR or 1040NR-EZ, along with the corresponding state forms, to report their income and pay any remaining taxes owed. It is important for international students to be aware of their tax obligations and to complete and submit the necessary forms accurately and on time to comply with the tax laws in the United States.

Frequently asked questions