A new payroll profile created after corporate restructuring can signal a change in who is actually employing you. That shift can look like a material change in the employer-employee relationship for H-1B purposes.
When the petitioning entity on your I-797 no longer matches the entity issuing wages, USCIS and its Fraud Detection and National Security (FDNS) directorate may respond with closer review, including site visits, RFEs/NOIDs, or audit activity. The practical risk is real.
Status maintenance and future filings can turn on payroll identity.
What you’ll need before you assess risk
Gather these items first. You will use them in the steps below.
- Your latest H-1B approval notice (Form I-797) and LCA details
- The last 3–6 paystubs showing legal name and FEIN (if shown)
- Offer letter and any revised employment letters after restructuring
- A current employment verification letter stating who controls and supervises your work
- Internal restructuring documents that mention payroll or entity changes (if available)
1) Overview and scope: why a “new payroll profile” is treated as a red flag
A “new payroll profile” after restructuring usually means one of these changes occurred:
- A new pay group in the HRIS system
- A new payroll FEIN attached to your wages
- A new paymaster or shared-services payroll entity
- A different employing entity name appearing on paystubs or W-2 planning
- A switch from one legal entity to another inside the same corporate family
For H-1B compliance, payroll is not just an HR detail. Payroll identity is tied to who has the right to employ you under the approved petition.
If the pay entity looks different from the petitioning entity, that mismatch can suggest you are working for an unauthorized petitioner unless the change is covered by an amended filing or a valid Successor-in-Interest (SII) transition.
Site visits and document requests often start with simple questions: Who pays you, who directs your work, and who can hire, fire, or reassign you? Payroll changes can affect every one of those answers. Small admin moves can trigger big scrutiny.
2) Official context: USCIS, FDNS, and related government guidance
Start with the basic map of roles:
- Petitioning entity: the legal employer that filed the H-1B petition and appears on the I-797 approval.
- Worksite location: where you physically perform services (including third-party sites, if applicable).
- Payroll/paymaster entity: the entity issuing wages and reporting them for tax purposes.
USCIS typically expects the petitioning entity to show it maintains a valid employer-employee relationship, meaning it can control your work. Control is shown through supervision, assignment authority, the ability to pay the offered wage, and the power to hire or terminate.
A discrepancy between petitioner and payroll entity raises predictable questions:
- Does the petitioner still control day-to-day work?
- Is the wage being paid exactly as offered in the petition and LCA?
- Did a different entity take over the right to employ you without notifying USCIS?
Restructuring can create a material change even when your title and desk stay the same. If the entity responsible for paying wages or directing work changes, FDNS may treat that as a compliance issue that should have been reported through an amended petition or documented SII.
Federal enforcement interest also matters. A DOJ memorandum dated February 5, 2025 directed prosecutors to prioritize immigration-related fraud, including failures to notify authorities of material changes. That posture increases risk for sloppy transitions, especially where payroll identity does not match the approved petitioner.
USCIS has publicly framed H-1B integrity as an active enforcement area. In a USCIS Newsroom release dated December 23, 2025, spokesperson Matthew Tragesser said: “The existing random selection process. was exploited and abused by U.S. employers. With these regulatory changes and others in the future, we will continue to update the H-1B program to help American businesses without allowing the abuse that was harming American workers.”
USCIS and FDNS focus on what can be proven on paper. Payroll is easy to check. So it gets checked.
Common post-restructuring entity/payment scenarios and likely compliance outcomes:
- Same legal entity; new internal pay group only — Same petitioning entity; typically no amendment needed if FEIN and employer remain the same. Risk: Low.
- Payroll moved to a related affiliate with a different FEIN — Different corporate affiliate; often an amendment is required unless SII clearly applies and is documented. Risk: High.
- Paymaster arrangement where petitioner remains employer of record — Separate paymaster entity; maybe an amendment depending on documentation showing petitioner control and wage obligation. Risk: Medium.
- Merger where a new entity assumes all obligations — New surviving entity; sometimes SII can avoid an amendment, though many employers still file to reduce risk. Risk: Medium.
- Spin-off where employee moves to newco — New company with new FEIN; usually an amendment is required and SII is often harder to prove. Risk: High.
3) Red flag factors: what counts as a red flag in practice
Look for concrete mismatch signals. One is enough to trigger internal escalation.
Common red flags tied to a new payroll profile
- FEIN on pay records differs from the H-1B petitioning entity.
- Paystubs list a different legal employer name than your I-797 petitioner.
- Employment verification letters use a different entity letterhead than the petitioner.
- Offer letter or post-restructure letter names a new employing entity.
- Supervisor chain or timekeeping approvals moved to a different company group.
USCIS ties these signals to the employer-employee relationship question: who controls the work and who must pay the wage. If the payor looks like a different employer, USCIS can view it as employment by a non-authorized entity unless corrected.
Successor-in-Interest (SII): the concept you must test
Successor-in-Interest (SII) is the main path companies cite after restructuring. SII means the new entity steps into the shoes of the old employer. That normally requires continuity of the business operations, assumption of the prior employer’s immigration-related obligations, and continuity of key employment terms (role, wages, worksite), aside from the petitioner’s identity.
SII is not just a corporate statement. It is an evidence package. For H-1B compliance, a written SII memorandum is commonly placed in the Public Access File (PAF) for audit defense and wage-hour alignment. If the company changes payroll first and “documents later,” FDNS may treat that gap as a compliance failure.
If a new payroll profile is created after restructuring, verify whether an amended H-1B petition is required and document SII considerations to avoid status and audit risk
4) Key policy and statistical details (2025–2026)
Three policy signals shape how USCIS may view payroll and entity changes during restructuring.
- Selection rule change and documentation pressure: A wage-weighted H-1B selection rule becomes effective February 27, 2026. The operational impact is straightforward: wage levels and wage records will sit closer to the center of case review. Restructuring that changes payroll systems, wage coding, or which entity reports wages can invite questions about whether the petition still matches reality.
- Published rule timing: The Federal Register published the weighted selection process rule on December 29, 2025. Use that publication date when you verify the text and effective dates.
- Employer-employee relationship remains a frequent denial driver: USCIS decision patterns show how sensitive this area is. 25% of H-1B denials were related to inconsistencies in the employer-employee relationship, often found through payroll review and control documentation gaps. That statistic should change how you treat “admin-only” payroll moves. They are not small.
USCIS site visits and FDNS reviews often focus on whether pay records match the petition wage and whether the petitioner controls the work. Restructuring makes both harder to prove unless you prepare the evidence set early.
If a new payroll profile is created after restructuring, verify whether an amended H-1B petition is required and document SII considerations to avoid status and audit risk
5) Impacts on affected individuals (and steps you can take)
Payroll/petitioner mismatch issues usually show up at stressful moments. Prepare for those moments.
How status maintenance questions arise
Status maintenance in H-1B often turns on two themes:
- Wage payment: Were you paid the required wage, by the right entity, on time?
- Authorized employment: Were you employed by the authorized petitioner, under the approved terms, without an unreported material change?
If wages come from a different entity than the petitioner, USCIS may question whether you were employed by an unauthorized petitioner during that period. Even if you did the same job, the legal employer identity can matter.
Travel and entry: why CBP can be skeptical
At entry, CBP officers may compare your documents quickly. A paystub showing a different employer name than the petitioner on the I-797 can trigger questions. Bring a clean, consistent set.
- I-797 approval for the correct petitioner
- Current employment verification letter describing role, worksite, and supervision
- Pay evidence matching the petitioner or a documented SII/paymaster explanation
- If applicable, a short employer letter explaining restructuring and confirming continued control
Extensions, amendments, and permanent residence filings
Extensions and amendments often ask for pay evidence and employer continuity proof. Any unexplained payroll entity change can lead to an RFE. Permanent residence filings can also review whether you maintained lawful work authorization in prior periods.
A payroll mismatch may complicate that review, even if it gets resolved later.
What to do now: a practical escalation checklist
Use a simple sequence. Document first, then decide filing strategy with counsel.
- Confirm the petitioning entity name and FEIN from the H-1B filing record.
- Compare pay records to the petitioner name and FEIN. Save copies.
- Ask HR or immigration counsel whether the company is treating the change as SII, paymaster-only, or a new petitioner.
- Check whether an amended petition is planned and the intended effective date. Timing matters.
- Ensure the PAF has the right memo if SII is claimed, and confirm wage continuity.
- Prepare travel documents that match your current situation before leaving the U.S.
Prepare a timeline of restructuring events, payroll changes, and communications to USCIS/PAF to support potential amendments or SII analysis
6) Official sources and references
– Federal Register (December 29, 2025): “Weighted Selection Process for Registrants and Petitioners Seeking to File Cap-Subject H-1B Petitions”
– USCIS Policy Manual: Successor-in-Interest (SII) (Volume 6, Part E, Chapter 3)
Use the current version dates when you download PDFs or print pages for filings.
This article provides informational guidance and does not constitute legal advice. Consult a qualified immigration attorney for case-specific guidance.
Policy interpretations can evolve; verify the most current USCIS, FDNS, and Federal Register materials before filings.
