Lana Oconnell
International students in the US are often interested in freelancing to gain work experience and make extra money. However, they are subject to work authorization requirements that affect their ability to freelance. In the US, freelancing is considered self-employment, and independent contractors are similar to freelancers but take on longer projects. International students with an F-1 visa can undertake contract work with certain restrictions, and those with an H-1B visa cannot work as independent contractors. In the UK, international students with a Student visa cannot be self-employed or engage in business activity, including freelancing.
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What You'll Learn
Work authorization requirements for international students
International students in the US are subject to work authorization requirements that affect their ability to work as freelancers or independent contractors. These requirements vary depending on the type of visa and the student's academic status. Here are the work authorization requirements for international students in the US:
F-1 Visa (Academic Student):
- During the first academic year, F-1 students are not allowed to work off-campus but may accept on-campus employment subject to certain conditions and restrictions.
- After the first academic year, F-1 students may engage in three types of off-campus employment: Curricular Practical Training (CPT), Optional Practical Training (OPT), and Severe Economic Hardship Employment.
- CPT allows students to gain practical experience in their field of study while still enrolled in school. It must be an integral part of the student's curriculum and authorized by the school.
- OPT is available for students who have completed their first year of academic study. It allows students to work in their field of study for up to 12 months, either during or after their studies. Post-completion OPT allows full-time work of up to 40 hours per week.
- In cases of severe economic hardship due to unforeseen circumstances, F-1 students may be authorized for off-campus employment by the US Citizenship and Immigration Services (USCIS).
- F-1 students can also work on campus for an employer educationally affiliated with their school without USCIS approval.
- To undertake contract work or freelance work on the STEM OPT extension, it is exceptionally difficult due to restrictions placed on employers by USCIS.
- The 12-month OPT extension of the F-1 visa allows students to work without being tied to a specific employer, enabling freelance work or self-employment directly related to their field of study.
M-1 Visa (Vocational Student):
M-1 students can participate in off-campus training employment, but it must be related to their area of study and authorized by the Designated School Official (DSO) and USCIS before starting work.
H-1B Visa:
International graduates with an H-1B visa cannot work as independent contractors. The employer becomes the sponsor and must comply with strict criteria.
Green Card:
Having a Green Card is the best option for those who want to undertake contract work in the US, as it allows for more flexibility in work authorization.
It is important for international students to carefully navigate their work authorization options and comply with visa regulations to maintain their legal status in the US. They can seek support from their school's international student services office and consult official government websites for up-to-date information on work authorization requirements.
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Freelancing as self-employment
International students in the US are subject to work authorisation requirements, which affect their ability to freelance. However, freelancing is considered a type of self-employment, and self-employment is allowed on OPT. This means that international students can freelance for multiple companies or clients as long as their total hours do not exceed the OPT limit.
Freelancers are self-employed, but not all self-employed workers are freelancers. Freelancers are often hired to complete a specific project and work from the direction of clients. They tend to work alone, taking on multiple jobs with different clients and working the hours they wish. Self-employed people, on the other hand, have more control over their projects and workflow and are not under the jurisdiction of employers. They decide what projects they work on, when and with whom they work, and their personal work style. They are their own boss and have total control over their work.
Both freelancers and self-employed workers are responsible for filing their own taxes. While the terms are often used interchangeably, the Internal Revenue Service (IRS) in the US and HMRC in the UK classify both as self-employed. They both get similar tax deductions and pay their self-employment tax return in the same way. However, some self-employed professions like therapists, childcare services, and construction workers are required to carry business insurance, whereas many freelance jobs do not require it.
International students in the US on an F-1 visa are not allowed to pursue contract jobs or freelance work opportunities during their first year of school. However, they can get OPT to work on freelance or self-employment opportunities related to their field of study. The 12-month OPT extension of the F-1 visa allows visa holders to work without being tied to a specific employer. It is also possible to undertake contract work on an H-1B visa, but it is exceptionally difficult due to the restrictions placed on employers by USCIS. The best option for contract work in the US is to wait until you receive a Green Card.
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OPT extension for F-1 student visas
International students on F-1 visas in the US are subject to work authorization requirements that affect their ability to freelance. F-1 visas are issued to full-time students pursuing academic studies at a Student and Exchange Visitor Program (SEVP)-certified school. Optional Practical Training (OPT) is a type of work permission available for eligible F-1 students, allowing them to gain temporary employment directly related to their major area of study.
To be eligible for OPT, students must have been lawfully enrolled on a full-time basis for one full academic year at an SEVP-certified educational institution. OPT can be applied for before completing academic studies (pre-completion) or after (post-completion), with a total of 12 months of employment authorization available. All OPT employment must be directly related to the student's major area of study.
For those pursuing degrees in Science, Technology, Engineering, and Mathematics (STEM) fields, there is the option to apply for a 24-month extension of the post-completion OPT period. To be eligible for the STEM OPT extension, students must have earned a qualifying STEM degree, be employed by an employer enrolled in and using E-Verify, and have received an initial grant of post-completion OPT employment authorization based on their STEM degree. The application for the STEM OPT extension must be filed on time, and if approved, the student's employment authorization will be automatically extended for 180 days until USCIS adjudicates the application.
While self-employment and freelancing are allowed on OPT, it is important to note that contract work is not permitted on the STEM OPT extension. International students can work full-time on post-completion OPT, but they cannot freelance during the STEM OPT extension period. Therefore, it is recommended to save OPT until after graduation to maximize the benefits and stay in the US longer.
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Contract work with an employer-employee relationship
International students in the US are subject to work authorisation requirements that affect their ability to freelance. In the US, freelancing is considered a form of self-employment, where the freelancer works for themselves rather than for an employer. They provide services or products through specific projects for multiple companies and/or clients.
Behavioural control refers to the degree of control the company or employer has over the worker's tasks and how they perform their job. Financial control pertains to the business aspects of the worker's job, such as payment methods, reimbursement of expenses, and provision of tools or supplies. The type of relationship refers to the existence of written contracts, employee benefits, and other perks such as pension plans, insurance, and vacation pay.
When determining whether a worker is an employee or an independent contractor, it is crucial to examine the entire relationship and consider the extent of the right to direct and control the worker. There is no set number of factors that define this relationship, and each situation may vary. If the classification remains unclear, Form SS-8 can be filed with the IRS, and they will officially determine the worker's status.
Employment contracts outline the guidelines and restrictions of the employer-employee relationship and are legally binding. These contracts include the full legal names of the involved parties, the employee's position, scope of responsibilities, and job title. They may also specify employee benefits, such as family and medical leave, health insurance, unemployment insurance, and workers' compensation insurance. Additionally, employment contracts can outline employee actions that are grounds for termination and include clauses that protect sensitive company information.
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Practical training for F-1 students
International students in the US on an F-1 visa have the option to engage in practical training during their program or after it ends. There are two types of practical training available: curricular practical training (CPT) and optional practical training (OPT).
Curricular Practical Training (CPT)
CPT is integral to an F-1 student's major, and the experience must be part of their program of study. CPT can be authorised by a designated school official (DSO) during the first semester of graduate school if the program requires this type of experience. Students cannot legally work before CPT is authorised in SEVIS. DSO authorisation can be on a part-time or full-time basis, in accordance with school policies. Students must maintain a full course of study even when CPT is authorised.
Optional Practical Training (OPT)
OPT is temporary employment directly related to an F-1 student's major area of study. Eligible students can apply to receive up to 12 months of OPT employment authorisation before or after completing their academic studies. All OPT must be directly related to the student's major area of study. F-1 students with a timely filed H-1B petition and a change of status request may be eligible for a cap-gap extension if their F-1 status and employment authorisation will expire before the change of status to H-1B.
Students with a degree in certain STEM fields may apply for a 24-month extension of their post-completion OPT employment authorisation if they are employed by an employer enrolled in and using E-Verify and have received an initial grant of post-completion OPT based on their STEM degree. However, it is important to note that OPT extensions for STEM degrees do not allow for freelance work.
While it is possible to freelance on OPT, it is important to take the right steps to avoid risking your visa status. Self-employment is allowed on OPT, but students must ensure they do not exceed the OPT limit of 40 hours per week.
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Frequently asked questions
International students in the US are subject to work authorization requirements that affect their ability to freelance or work as independent contractors. An F-1 student on OPT with an EAD may work as a contractor for an employer, but only if they have a work permit.
The short answer is no. However, the 12-month OPT extension of the F-1 visa allows you to work without tying you to a specific employer.
No, you cannot work as an independent contractor on an H-1B visa. Your employer becomes your sponsor and must comply with strict criteria.
International students in the UK cannot be self-employed or engage in business activity. This includes working as a freelancer, contractor, or consultant.
Yes, international students in Canada can be self-employed as long as they work fewer than 20 hours per week.
