Can an H-1B Employee Accept a Direct Cash Bonus from a Client?

It is strongly advised against accepting funds directly from a third party while on H-1B status. Even if intended as a performance bonus for past work, immigration authorities may view direct payments from an entity other than the sponsoring employer as unauthorized employment or a violation of status. To remain compliant, the end-client should disburse the bonus to the primary H-1B employer, who can then process the payment through standard payroll with appropriate tax withholdings.