Form I-9

Intro to Form I-9?

Form I-9, Employment Eligibility Verification, is a critical compliance document required by U.S. immigration law that affects every employer and employee in the United States. Created following the Immigration Reform and Control Act of 1986, this mandatory form serves as the government’s primary mechanism to verify employment authorization and identity for all individuals hired for employment in the U.S. Understanding Form I-9 requirements is essential for HR professionals, as improper completion or verification can result in significant penalties for employers.

Definition of Form I-9

Form I-9, Employment Eligibility Verification, is a United States Citizenship and Immigration Services (USCIS) document that employers must complete for every employee hired in the United States. The purpose of the form is to verify the identity and employment authorization of individuals hired for employment. It consists of three sections:

• Section 1: Completed by the employee no later than their first day of employment, providing personal information and attestation of citizenship or immigration status.
• Section 2: Completed by the employer within three business days of the employee’s first day, documenting review of the employee’s identity and employment authorization documents.
• Section 3: Used for reverification when an employee’s work authorization expires or when rehiring a former employee within three years of the original I-9 completion.

Unlike tax forms such as the Form W-4, the I-9 is not submitted to any government agency during normal operations. Instead, employers must retain completed I-9 forms for all current employees and for terminated employees for a specific period: either three years after the hire date or one year after employment ends, whichever is later.

Employers must make these records available for inspection by authorized government officials from the Department of Homeland Security, Department of Labor, or Department of Justice upon request.

Importance of Form I-9 in HR

Form I-9 compliance is critical to HR operations for several key reasons:

• Legal Compliance: Completing Form I-9 is not optional—it’s required by federal law for all employers, regardless of size. Failing to properly complete, retain, or produce I-9 forms can result in civil penalties ranging from $234 to $2,332 per violation (as of 2023, subject to periodic adjustment).
• Protection Against Unauthorized Employment: The I-9 process helps ensure that employers don’t knowingly hire individuals who aren’t authorized to work in the United States, which could otherwise lead to criminal penalties and substantial fines.
• Anti-Discrimination Compliance: Proper I-9 procedures require verification without discrimination. Employers must validate work authorization for all employees—not just those who appear foreign—while avoiding document abuse or unfair document requests.
• Audit Readiness: Immigration and Customs Enforcement (ICE) conducts regular I-9 audits of businesses. Well-maintained I-9 records demonstrate good faith compliance effort, which can mitigate penalties if technical violations are found.
• Reputation Protection: Public enforcement actions against employers with I-9 violations can damage company reputation and brand. Proper compliance helps avoid negative publicity.

For companies dealing with international tax documentation, understanding how Form I-9 requirements differ from other documents like the W8 Ben Form (which applies to foreign individuals receiving U.S. income) is important for comprehensive compliance.

Similarly, organizations handling multiple tax forms should understand how Form I-9 differs from IRS Form 1096, which serves as a transmittal document for certain information returns.

Examples of Form I-9

Example 1: Standard New Hire Process

TechStart Inc. hires Maria Rodriguez as a software developer. On her first day, HR provides Maria with Form I-9 to complete Section 1, where she enters her personal information and attests to her U.S. citizenship. Maria brings her U.S. passport the following day. The HR manager examines the passport, confirms it appears genuine and relates to Maria, then completes Section 2 by recording the document information, signing, and dating the form. The company stores Maria’s I-9 in a secure, dedicated filing system separate from her personnel file, setting a reminder to purge the form three years after her hire date or one year after employment ends, whichever is later.

Example 2: Remote Employee Verification

GlobalTech Corporation hires Daniel Chen, who will work remotely from another state. Since the employer cannot physically examine Daniel’s documents, they designate a local notary public as an authorized representative. Daniel completes Section 1 electronically on his first day. He then meets with the notary, who physically examines his driver’s license and Social Security card, completes Section 2 on behalf of GlobalTech, and sends the completed form to the company. GlobalTech reviews the form for accuracy, stores it according to compliance requirements, and maintains documentation of the authorized representative arrangement.

Example 3: Employment Authorization Reverification

Innovative Solutions employs Amir Patel, a foreign national working under Optional Practical Training (OPT) with an Employment Authorization Document (EAD) valid for one year. The HR department sets a reminder 90 days before the expiration date. When notified, HR contacts Amir about his work authorization status. Amir has received a STEM OPT extension with a new EAD. Before his original authorization expires, HR completes Section 3 of his original I-9, documenting the new EAD information and extension dates. They update their tracking system with the new expiration date and set another reminder for the next reverification deadline.

How HRMS platforms like Asanify support Form I-9

Modern HRMS platforms streamline and enhance Form I-9 compliance through several technological capabilities:

• Digital Completion: Electronic I-9 systems guide employees through Section 1 completion with error-checking features that flag missing or inconsistent information before submission. Similarly, employers receive step-by-step guidance for Section 2 completion.
• Automated Reminders: HRMS platforms can automatically alert HR when Section 2 must be completed within the three-business-day window and when work authorization documents are approaching expiration dates requiring reverification.
• Document Management: Systems provide secure storage of completed I-9 forms with appropriate access controls, while maintaining them separately from personnel files as recommended by USCIS.
• E-Verify Integration: Many HRMS platforms offer integration with E-Verify, the federal employment eligibility verification system, streamlining the additional verification process for employers who participate in the program.
• Audit Preparation Tools: Advanced systems include audit functionality that regularly checks for missing, incomplete, or expired I-9 documentation, allowing proactive correction before an official audit occurs.
• Compliant Retention and Purging: HRMS platforms can track retention requirements and automatically flag I-9 forms eligible for destruction based on hire date and termination date calculations.
• Remote Verification Support: With the growth of remote work, HRMS platforms increasingly offer solutions for managing authorized representatives for document verification and maintaining proper documentation of the process.

By leveraging these technological capabilities, HR departments can significantly reduce the administrative burden of I-9 compliance while improving accuracy and reducing risk exposure.

FAQs about Form I-9

When must Form I-9 be completed?

Form I-9 completion follows a strict timeline. The employee must complete Section 1 no later than their first day of employment (but not before accepting a job offer). The employer must complete Section 2 within three business days of the employee’s first day of work. For example, if an employee starts on Monday, Section 2 must be completed by Thursday. If an employee is hired for less than three days, both sections must be completed on the first day. These deadlines apply to all employers regardless of size or industry.

What documents can employees provide for Form I-9 verification?

Employees can provide documents from three categories: List A documents (which establish both identity and employment authorization), or a combination of one List B document (establishing identity) and one List C document (establishing employment authorization). List A documents include a U.S. passport, permanent resident card, or employment authorization document with photo. List B includes driver’s licenses, ID cards issued by federal or state agencies, and school IDs with photos. List C includes Social Security cards, birth certificates, and Native American tribal documents. Employers cannot specify which documents employees must provide from these lists—the choice belongs to the employee.

Can Form I-9 be completed electronically?

Yes, Form I-9 can be completed electronically, provided the electronic system meets specific requirements established by the Department of Homeland Security. The electronic system must include controlled access, audit trails to track creation, modification, and completion, and features to prevent unauthorized or accidental changes. Electronic signatures are permitted if they comply with the Electronic Signatures in Global and National Commerce Act. However, even with electronic completion, the employer must still physically examine original documents (not photocopies or scans) unless using the temporary COVID-related flexibility measures or other officially sanctioned remote verification procedures.

What are the penalties for Form I-9 violations?

Penalties for Form I-9 violations can be substantial and vary based on the type and severity of the violation. For paperwork violations (including missing, incomplete, or improperly completed forms), fines range from $234 to $2,332 per form (as of 2023, adjusted periodically for inflation). For knowingly hiring or continuing to employ unauthorized workers, penalties range from $583 to $23,331 per worker for first offenses, with higher penalties for repeat violations. Pattern or practice violations can result in criminal charges, including fines up to $3,000 per unauthorized employee and imprisonment for up to six months. Factors affecting penalty amounts include company size, good faith efforts, seriousness of violation, and history of previous violations.

How long must employers retain Form I-9 records?

Employers must retain Form I-9 for all current employees. For terminated employees, retention requirements follow a dual timeline: forms must be kept for three years after the date of hire OR one year after the date employment ends, whichever is later. For example, if an employee worked for two years, the I-9 must be retained for three years after hire (which is longer than one year after termination). If an employee worked for five years, the form must be kept for one year after termination (which is longer than three years after hire). Employers should establish a regular schedule for purging I-9 forms that have met retention requirements to minimize liability during potential audits.