Running a small business is demanding enough without the added stress of complex regulations. However, complying with the law regarding employee identity and employment authorization is important. The Form I-9 is a federal requirement for every employer in the U.S., regardless of company size.
This guide is designed specifically for small business owners like you. We'll break down the I-9 process into more manageable steps, highlight common pitfalls to avoid, and provide practical tips and resources to help you streamline your I-9 efforts. By the end of this guide, you'll be better equipped with more knowledge and confidence to help you better navigate your I-9 process.
Form I-9, Employment Eligibility Verification, is a federal document that serves as a cornerstone of employment law. Every employer in the U.S. must complete an I-9 for each new hire, regardless of their citizenship or immigration status. The form collects information that verifies both the employee's identity and their authorization to work in the United States.
Legal Obligation: The Immigration Reform and Control Act (IRCA) mandates I-9s for all employers, including small businesses. Failure to comply can lead to penalties and legal consequences.
Avoiding Costly Fines: Penalties for I-9 violations can range from hundreds to thousands of dollars per violation. For small businesses, these fines can be financially devastating.
Protecting Your Business: Form I-9 helps you maintain a legal workforce, better safeguarding your business from potential legal issues, audits, and reputational damage.
Obtain the Form: Download the latest version of Form I-9 (Nov. 8, 2023, edition) from the U.S. Citizenship and Immigration Services (USCIS) website. Ensure you are using the correct version, as outdated forms may not be accepted.
Employee Completes Section 1: On or before their first day of work for pay, have the new employee complete Section 1 of the form. This section collects their personal information and requires them to attest, under penalty of perjury, to their eligibility to work in the U.S.
Employer Verification (Section 2): Within three business days of work for pay, you must physically examine the employee's original documents to verify their identity and employment authorization.
Complete Section 2: Record the document information in Section 2 of the form and sign and date it to attest that you have examined the documents and they appear genuine.
Retain the Form: Keep the completed I-9 form for each employee on file for three years after the date of hire or one year after employment ends, whichever is later. Store the forms securely to ensure they are easily accessible for inspection.
Not Completing I-9s for All Employees: Every new hire must complete an I-9. This includes part-time employees, temporary workers, and even family members.
Missing Deadlines: The deadline for completing Section 2 is strict – three business days from the date of work for pay. Late completion can result in penalties.
Over-Documentation: Requesting more documents than necessary can be considered discriminatory. Stick to the I-9 requirements and avoid asking for specific documentation.
Improper Corrections: If you need to correct an error on an I-9 form, use a different colored ink to make the correction. Never use white-out or erase information. Both you and the employee should initial and date any corrections.
If you are unsure, consult the I-9 instructions or seek guidance from an immigration attorney or HR professional.
Training: Ensure that whoever is responsible for completing and verifying I-9 forms in your company is properly trained on the process. The USCIS offers free online training resources to help you get started.
Storage and Organization: Maintain organized records of all I-9 forms, either in physical files or through an electronic I-9 management system. This will make it easier to access and audit forms when needed.
Regular Internal Audits: Conduct periodic internal audits of your I-9 forms to help identify and correct errors before they become violations. A self-audit checklist can be a helpful tool.
E-Verify (Optional): Consider enrolling in E-Verify, a free online system that allows you to electronically confirm the employment eligibility of your new hires. While it's not mandatory for most small businesses, E-Verify can add an extra layer of confidence and security to your verification process.
Seek Guidance: If you have any questions or concerns about your I-9 process, don't hesitate to seek guidance from an immigration attorney or HR professional. They can provide expert advice tailored to your specific situation.
Remember, being proactive about your Form I-9s is an investment in your company's future. By prioritizing your I-9s, you can help reduce or avoid costly mistakes, and focus more on what you do best – growing your business.
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The information provided is intended as general guidance and is not intended to convey any tax, benefits, or legal advice. For information pertaining to your company and its specific facts and needs, please consult your own tax advisor or legal counsel. Equifax Workforce Solutions provides services that can help employers reduce their compliance risks. Details on our provision of these services and related support will be contained in your services agreement. Links to sources may be to third party sites. We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.