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rahul0987 · Dec 10, 2007, 02:51 PM

Hi,

I am international student doing masters in usa, I am presently working on cpt and my opt starts from dec 25th 2007 and didn't receive my opt card, I shouldn't work until I get my opt card, but my employer is asking me to work and he said he won't run the pay checks but he will give my pay as 1099 form.does this effect on my h1 status. I am in confused state. Some one guide me regarding this situation

MukatA · Dec 14, 2007, 01:35 AM

As a rule the employer must check the following before employing an F-1 visa holder:
*A valid passport,
*A Form I-20 ID (student copy), bearing the recommendation of the Designated School Official (DSO) on page 4, and
*An Employment Authorization Document (EAD). The EAD (Form I-688B) is a laminated, photograph I.D. card issued by Immigration with the dates of authorized employment.

An employee gets W2, while an independent contractor get 1099. When you are a W2 employee, the employer must withhold employment taxes and income taxes. When you are a 1099 employee, the employer does not withhold taxes and does not pay his part of employment taxes. You must pay your own employment taxes. But in case of F1 visa holder, he does not pay FICA taxes.