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  1. #1
    Join Date
    Feb 2013
    Posts
    3

    Default Can a H1B Employee Accept a Referral Bonus from a Recruiting Firm

    I had a question regarding my tax liability for accepting referral bonus and would appreciate your answers.

    I have joined a new company XYZ and the recruiting agency (recruiting agency only nominated me to the current employer as a suitable candidate for the job) mentioned of a Referral Bonus.
    I am on H1B, and I had heard that I cannot accept money from any entity other than My employer, that is my employer XYZ, which is sponsoring my H1B and I am core employee of the company XYZ.
    Was expecting a check of some sort but the recruiting agency has sent me W-9 to be filled up, which will be submitted to IRS. Upon providing this W-9, recruiting company will issue a check.

    Had the below questions:

    1) Can I accept this Referral Bonus from recruiting agency, for whom I do not work.
    2) They gave me a W-9 form and this is what got me thinking about my tax liabilities and also if I am supposed to accept any referrals of this sort being on H1B status.
    Recruiting agency will provide the 1099 form for tax filing at a later time.


    Let me know what your thoughts are and If a person on H1B can get such payments?

    Thanks

  2. #2
    Join Date
    Sep 2005
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    Default Re: Can a H1B Employee Accept a Referral Bonus from a Recruiting Firm

    This is not income earned through labor, so I don't see a problem. Depending upon how the eventual 1099 is completed, it may trigger an inquiry - but an H1B worker is not prohibited from non-employment activity that might result in a 1099 being issued. You could get a 1099 if you won money in a contest, for example.

  3. #3
    Join Date
    Feb 2013
    Posts
    3

    Default Re: Can a H1B Employee Accept a Referral Bonus from a Recruiting Firm

    How should the 1099 have this transaction as?. Please provide your inputs. Thanks.

  4. #4
    Join Date
    Feb 2013
    Posts
    3

    Default Re: Can a H1B Employee Accept a Referral Bonus from a Recruiting Firm

    The recruiting agency would be providing the 1099 with the transaction as "Non-Employee Compensation", will this cause any issue considering that I am on H1 Visa.

    Thanks

  5. #5
    Join Date
    Sep 2005
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    98,846

    Default Re: Can a H1B Employee Accept a Referral Bonus from a Recruiting Firm

    At risk of repeating myself:
    Quote Quoting Mr. Knowitall
    View Post
    This is not income earned through labor, so I don't see a problem. Depending upon how the eventual 1099 is completed, it may trigger an inquiry - but an H1B worker is not prohibited from non-employment activity that might result in a 1099 being issued. You could get a 1099 if you won money in a contest, for example.

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