Hiring OPT student on 1099

[gaggz]

Dear everyone,
Thanks for taking out time to read this question.

I founded a research consulting company (s-corp) and found a great international student on OPT, whom I want to employ 2 days a week initially, on 1099 basis. OPT student will be placed through my s-corp at a doctors clinic that conducts research projects for pharma companies. Just to clarify, OPT is a kind of "permit" that US government gives students to do work, this student is not a green card holder or citizen of USA. He is working 1 day a week elsewhere on 1099 basis. I did my homework and found out that OPT can work more than 1 job at a time on W2, 1099, or combination. However, have a few questions:

1. Do I need to e-register or register my before offering a job to OPT (like register at the university office, or inform US government/State government)?
2. Is there anything I need to keep in mind (do not want to get in trouble with law)? Am proposing $22-25/hour on 1099 basis (independent contractor) to student on OPT.
3. Do I need to do anything in particular like EDD forms, offer workplace harrassment handout from EDD, and so on?
(note: I gather work is to be in related field of study and have confirmed indeed it is related)

Thanks so much

What is the name of your state ? California

 

[cbg]

There are a great many things you need to keep in mind. It is always legal to hire someone as an employee (W-2 basis) but it is not always legal to hire them as an Independent Contractor (1099 basis).

Before you go any further you need to determine whether this student will meet the requirements to be an IC and receive a 1099.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee

Even if it turns out that he has to be an employee and receive a W-2, it doesn't mean he can't be assigned only 2 days a week or work another job. But it does make a difference what employment and wage hours you're required to follow.

 

[FlyingRon]

It depends if you're talking about OPT or CPT. Best bet is to talk to the international students office at their school.

 

[gaggz]

Thanks everyone for reading and for the replies