FAQs

Q. I came to the US one year ago under H1B with company "ABC", but at the present time the company does not have any assignments for me. They gave me a notice of early contract termination. Under the immigration law, I have to leave the US, but my skills are required on market and I started to negotiate work opportunities with different clients. They are ready to use my services but are not willing to sponsor my H1B. This is a matter of time. How I can resolve this situation?

A. If you already have a prospective client, notify them that you have a H1B sponsorship and would be on a W2 payroll with your sponsor. Upon negotiation of contract terms with a prospective client we start all legal paperwork to transfer your visa. In some cases we can start H1B transfer process before you find a client.

Q How long does it takes to transfer H1B visa?

A. In most cases it takes 8 to 12 weeks. But you can start working with the new company on the date we submit a petition to INS. In some cases we can accelerate this process.

Q. How do umbrella companies save money for independent contractors?

A. When you become a client of an umbrella company, you also become an employee of that company for payroll and benefit qualification purposes. In so doing, we are eligible to purchase health insurance at less expensive group rates. In some cases we also provide a group plan for dental and vision. In addition, you are also covered under the umbrella company's master policy for general liability, professional liability (E &O) and workers' compensation insurance. Depending on your business insurance needs, these cost savings can be significant. Finally, after a consultant worked for us for some time, we offer some form of a retirement plan such as a 401(k). Although individuals can establish investment vehicles that match the benefits of group retirement plans, these can be expensive and cumbersome to manage.

Q. How do umbrella companies save independents contractors time on administrative issues?

A. It has been estimated that independent contractors spend between three and seven hours per week performing administrative tasks not directly related to their project. Umbrella companies can reduce this time by eliminating the need for the contractor to prepare invoices, file quarterly estimated taxes, and maintain updated business financial statements. Umbrella companies become your "back office" for administrative duties.

Q. Do umbrella company clients lose all of the tax advantages of being self-employed?

A. No. All independent contractors enjoy the benefit of deducting legitimate business expenses from their gross income. Most umbrella companies provide their clients/employees with pre-tax reimbursements for those expenses, thereby matching the benefit available to all self-employed individuals.

Q. What if I have already incorporated?

A. UNIPOINT can modify services to help individuals or small groups who have previously incorporated. In most cases, there is no need to give up your corporate identity or change the structure of your company in order to enjoy the benefits and services offered by us.

Q. Can I use a technical recruiter to find work?

A. Most umbrella companies view the services provided by the technical recruiting industry as complementary to their relationship with the client. In fact, most umbrella companies do not take on any direct role in the job matching function, so the client is not only allowed but also encouraged to use any means at their disposal to find contract work.

Q. Does an umbrella company replace my accountant?

A. No. While an umbrella company can greatly simplify the administrative issues associated with being independent, it is not a replacement for your accountant. In many cases, your financial affairs are made much simpler, and that can result in less work for your CPA and potentially lower accounting fees.

Q. What are the fees?

A. UNIPOINT charges a fee from every billable hour. That fee is negotiated with a client and is depending of amount of services provided and the consulting contract terms.