The Purpose of Form I-9: What Employers Need to Know

One of the first things that should happen when hiring a new employee is to complete Form I-9, Employment Eligibility Verification. Although I-9s have been around for decades, they're still one of the most overlooked compliance requirements.

The purpose of an I-9 is to verify that an employee is legally authorized to work in the United States. Every employer is required by federal law to complete one for each employee hired after November 6, 1986.

How Is an I-9 Completed?

The process is straightforward, but timing is important.

The employee completes Section 1 on or before their first day of work. This includes their personal information and an attestation that they are authorized to work in the United States.

The employer then has three business days from the employee's first day of work to complete Section 2. During this step, the employer reviews the employee's original documentation to verify both identity and employment authorization. Employees may choose which acceptable documents to present from the Lists of Acceptable Documents. Employers cannot request specific documents.

Section 3 is used when an employee's work authorization requires reverification or when an employee is rehired under certain circumstances.

How Should I-9s Be Stored?

Once completed, I-9s should be stored securely and kept separate from employee personnel files. This makes it easier to locate them during an audit while helping protect employee information.

Employers must retain completed I-9s for three years after the employee's hire date or one year after employment ends, whichever is later. After the required retention period has expired, the forms should be securely destroyed.

What Is E-Verify?

Many employers also participate in E-Verify, a free online system operated by the Department of Homeland Security that compares information from Form I-9 with government records to confirm employment eligibility.

It's important to remember that E-Verify does not replace Form I-9. Employers must still complete and retain an I-9 for every employee. Depending on your state, industry, or federal contract requirements, participation in E-Verify may be mandatory.

Recent Changes to Form I-9

Over the last couple of years, US Citizenship and Immigration Services (USCIS) has made several updates to Form I-9 that employers should be aware of.

Some of the most notable changes include:

• The form has been shortened from four pages to two pages, making it easier to complete.
• Instructions have been simplified, and many outdated sections have been removed.
• The form now uses the term "gender" instead of "sex" in the List B identity documents section.
• Lists of Acceptable Documents have been updated, including revisions to certain acceptable receipts and document descriptions.
• Employers enrolled in E-Verify who meet federal requirements may use the authorized alternative procedure for remote document examination instead of always conducting an in-person review.
• Employers should ensure they are using the current edition of Form I-9, as older versions eventually expire and can no longer be used for new hires.

What Happens If an I-9 Isn't Completed Correctly?

Many employers assume that an I-9 is simply another hiring form, but the penalties for noncompliance can be significant.

Employers may face penalties for:

• Failing to complete an I-9
• Completing the form after the required deadline
• Missing signatures or required information
• Accepting improper or expired documentation
• Failing to retain forms for the required retention period
• Knowingly employing individuals who are not authorized to work in the United States

Even simple paperwork errors can result in civil penalties, and those fines are adjusted periodically for inflation. If a business is found to have knowingly hired or continued to employ unauthorized workers, the penalties can increase substantially and may include additional legal consequences.

Best Practices

The best way to avoid problems is to make I-9 compliance part of your standard onboarding process.

• Complete the form within the required deadlines.
• Review each form for accuracy before filing.
• Never tell an employee which documents to provide.
• Store I-9s separately from personnel files.
• Conduct periodic internal audits to identify and correct errors.
• Make sure you're using the current version of Form I-9.

A few extra minutes spent completing and reviewing an I-9 can save your business significant time, money, and stress if you're ever selected for an audit.

If you have questions about your onboarding process or recordkeeping, our Client Accounting Services team is happy to help you establish best practices and keep your business organized and audit-ready. Please keep in mind, it is always best to seek legal advice or the assistance of a Human Resources professional for specific employment requirements.