As a business owner, it is essential to ensure that you comply with all federal and state regulations. One important compliance requirement for employers is the completion and retention of Form I-9, Employment Eligibility Verification. The U.S. Citizenship and Immigration Services (USCIS) requires employers to complete this form for all newly hired employees, including both citizens and non-citizens. Here is your guide to IRS Form I-9 compliance:
What is Form I-9?
Form I-9 is a document that verifies an employee’s identity and authorization to work in the United States. This form is completed by the employer and the employee and must be kept on file for three years after the date of hire or one year after the date of termination, whichever is later. It is important to note that the form must be completed for all employees, regardless of citizenship status.
Why is Form I-9 important?
Form I-9 compliance is important because it helps to prevent the employment of unauthorized workers in the United States. Employers who fail to comply with Form I-9 requirements can face significant penalties, including fines, loss of government contracts, and even criminal prosecution.
How to complete Form I-9?
Section 1: Employee Information and Attestation
Section 1 of Form I-9 must be completed by the employee no later than their first day of work. This section includes basic information such as the employee’s name, address, and date of birth. The employee must also attest to their citizenship or immigration status, and provide documentation to support their status.
Section 2: Employer Review and Verification
Section 2 of Form I-9 must be completed by the employer no later than three business days after the employee begins work. The employer must review the documentation provided by the employee and verify that it appears to be genuine and relates to the employee. The employer must also document the title, number, and expiration date of the documents provided.
Section 3: Reverification and Rehires
Section 3 of Form I-9 is used for reverification and rehires. Employers must complete this section when an employee’s employment authorization expires or when the employee is rehired within three years of the date of the original Form I-9.
Form I-9 Retention and Storage
Employers must retain Form I-9 for three years after the date of hire or one year after the date of termination, whichever is later. The form can be stored electronically or in paper format, as long as it is easily accessible for inspection by government officials.
Form I-9 Compliance Tips
Tips 1: Train your staff
Make sure that all managers and human resources personnel who are responsible for completing Form I-9 are properly trained. They should be familiar with the instructions and requirements for completing the form.
Tips 2: Use the most current form
Make sure that you are using the most current version of Form I-9. The USCIS updates the form periodically, and failure to use the most current version can result in penalties.
Tips 3: Complete the form on time
Make sure that you complete Form I-9 for all employees within three business days of the date of hire. Failure to do so can result in penalties.
Tips 4: Verify the authenticity of documents
When reviewing employee documents, make sure that they appear to be genuine and relate to the employee. If the documents seem suspicious or if you have reason to believe that they are fraudulent, contact the USCIS immediately.
Tips 5: Keep accurate records
Make sure that you keep accurate records of Form I-9 and that they are stored properly. You should also have a system in place to remind you when it is time to update or reverify the Form I-9 for employees.
Tips 6: Conduct self-audits
Periodically conduct self-audits of your Form I-9 records to ensure that they are complete and accurate. This can help you identify and correct any errors or omissions before they are discovered during a government audit.
Tips 7: Seek professional assistance
If you are unsure about how to complete Form I-9 or have questions about compliance requirements, seek the assistance of a qualified professional. This can help you avoid potential penalties and ensure that you comply with all regulations.
Consequences of Non-Compliance
Employers who fail to comply with Form I-9 requirements can face significant penalties, including fines, loss of government contracts, and even criminal prosecution. Here are some of the consequences of non-compliance:
1. Fines:
Employers who fail to comply with Form I-9 requirements can be fined by the government. The fines range from $234 to $2,332 per form for first-time offenses, and from $467 to $4,665 per form for repeat offenses.
2. Loss of government contracts:
Employers who fail to comply with Form I-9 requirements can lose eligibility for government contracts. The Federal Acquisition Regulation (FAR) requires contractors to comply with Form I-9 requirements as a condition of eligibility for government contracts.
3. Criminal prosecution:
Employers who knowingly hire unauthorized workers or who engage in document fraud can be criminally prosecuted. The penalties for criminal violations can include fines and imprisonment.
Final Words
Form I-9 compliance is an important requirement for employers in the United States. Employers who fail to comply with Form I-9 requirements can face significant penalties, including fines, loss of government contracts, and even criminal prosecution. By following the tips and guidelines outlined in this article, you can ensure that you are in compliance with all regulations and avoid potential penalties. Remember to train your staff, use the most current form, complete the form on time, verify the authenticity of documents, keep accurate records, conduct self-audits, and seek professional assistance if needed. With these steps, you can ensure that your business complies with Form I-9 requirements and avoid potential legal issues.
Read more about IRS Forms For New Employees
FAQ
All employers, including U.S. citizens and noncitizens, must complete Form I-9 for each employee they hire for employment in the United States.
Form I-9 must be completed no later than the first day of employment for pay. This means that the employee must have been offered and accepted a job offer before Form I-9 can be completed.
There are three types of documents that an employee can use to verify their identity and employment authorization: List A documents (such as a US passport or a Permanent Resident Card), List B documents (such as a driver’s license or a state ID card), and List C documents (such as a social security card or a birth certificate).
Employers must keep Form I-9 for three years after the date of hire, or one year after the date of termination, whichever is later.
