During the Program

Thank you for hosting a J-1 intern/trainee through CDS International. The staff at CDS is committed to offering you and your intern assistance throughout the program. The following pages offer answers to some of the questions you may have during the internship. If at any point you need more information, please contact your CDS representative or email us at .

Health Insurance

All J-1 visa holders must have health and accident insurance that meets U.S. government regulations. CDS International provides insurance coverage through International Educational Exchange Services (IEES) that meets these regulations and is offered at a discounted group rate of US$46 per month. Some host companies may choose to offer additional coverage through their own policies.

IEES insurance covers illness and medical emergencies. It does not include check-ups, non-emergency dental procedures, regular eye exams, or most pre-existing conditions. Details on this plan are included in the IEES Coverage and Frequently Asked Questions Brochure.

The host company may choose to pay the insurance fee or pass the payment on to the intern. All health insurance fees must be paid before CDS can issue Form DS-2019. Please direct all inquiries regarding the payment of insurance fees to your CDS representative.

Wages & Taxes

Wages

Each host company defines its intern’s level of compensation. This can include a monthly wage, housing, or some other benefit. Please note that it should be equivalent to what an American intern would earn.

Your intern may have questions regarding his/her first paycheck, especially when he/she notices any deductions. Please review paycheck deductions with the first paycheck. These may include tax withholdings, as well as any additional fees such as a uniform or meal plan costs.

Social Security Number

Your intern should apply for a Social Security Number shortly after arriving in the United States. The application process could take up to six weeks and may overlap with the start of the internship program. You can still add your intern to payroll without a Social Security Number, so long as they are able to present the receipt they received when they applied for the number.

When completing IRS Form W-4, enter “Applied for” in the box asking for a Social Security Number. Once your intern receives his/her Social Security Number, you can file the number through Form W-2C, Corrected Wage and Tax Statement.

Taxes

All J-1 interns and trainees are subject to the following taxes:

• Federal income tax
• State and city income taxes

They do not pay:

• Social Security and Medicare (FICA)
• Federal Unemployment (FUTA)

To claim FICA and FUTA exemptions, attach a written statement to Form 940 and Form 941 stating that those holding a J-1 visa are not subject to FICA and FUTA taxes. There are no other forms to complete.

Your intern must also complete IRS Form W-4 and Form I-9 at the start of the internship. Please note that since J-1 interns are considered “non-resident aliens”, they should disregard the instructions on Form W-4. Please refer them to the section Completing Forms at the Start of your Internship for instructions on how to complete this form.

Host companies are required to provide Form W-2 to any intern who received compensation. Those who did not receive compensation do not need Form W-2; however, they must still file a tax return using IRS Form 8843. Should additional questions arise, please refer them to the section Filing your Taxes.

Evaluations

Evaluations are required by the U.S. Department of State at the end of an internship. Those with a program lasting longer than six months must also submit a Midterm Evaluation. Evaluations must be completed and signed by the host company supervisor and the intern.

>>Download the Midterm Evaluation

>>Download the Final Evaluation

Once you have completed your evaluatino, email it to evaluations@cdsintl.org. Please do not submit a hard copy if you have already sent it electronically.

Extensions

You and your intern may find it mutually beneficial to extend the program beyond the original dates printed on Form DS-2019. Programs may be extended up to the maximum length for each J-1 visa category: 12 months for interns and 18 months for trainees. CDS assesses an extension fee of US$500, and additional health insurance must be purchased to cover the extended program dates.

To apply for an extension, contact your CDS representative as soon as possible and no less than two weeks before the end date on your intern’s Form DS-2019. When requesting an extension, please let CDS know the new end date and who should receive the invoice.

The following items must be submitted to CDS at least two weeks before the original end date:

• New Training/Internship Placement Plan (Form DS-7002) reflecting the additional skills your intern will learn
• Letter written to CDS by the supervisor explaining why the extension is necessary and how the intern will benefit
• Intern mid-term report and the host company intermediate evaluation form
• Extension fee and payment for additional insurance