26 Sep How to Correctly Fill Out I-9 Forms at Your Company
Since 1986, the federal government has required employers to complete I-9 forms for each worker. While many workplaces may feel like they are complying with this rule, this is rarely the case. Any mistakes on Form I-9 can lead to hefty fines, so it’s important to take some time to learn how to correctly fill out I-9 forms at your small business.
Do You Keep a Form I-9 for Each Person You Hire and for One Year After Their Employment Ends?
We interviewed 1,065 small businesses about their HR practices. We asked five questions on each of the survey’s eight topics.
During the section on HR compliance, we asked firms if they kept a Form I-9 for each person they hired for a year after their employment officially ended. We also asked employers about what their growth was like during the previous year, and then we compared how fast-growth and slow-growth companies performed.
- 84% of zero-growth firms said they kept and stored I-9 forms.
- 86% of fast-growth firms said they kept and stored I-9 forms.
This was a fairly narrow spread. The real surprise in the data was that the numbers were so high. In a recent interview with Mission to Grow, Asure’s vice president of HR Compliance and Learning and Development, Mary Simmons, talked about her personal experience with clients.
In over 30 years of consulting with companies about Form I-9 and other HR practices, Simmons has only had a single company that didn’t have a lot of mistakes on their I-9s. A single I-9 mistake can lead to a $272 to $2,701 fine.
While it’s possible these firms are correctly keeping and storing their I–9 forms, there is a good chance they aren’t filling out the form properly. Since it’s impossible to know what you don’t know, it’s likely many companies think they’re filling out the form correctly and aren’t.
How to Fill Out I-9 Forms Correctly at Your Business
To fill out Form I-9, you must get the employee to complete their section. Employers are responsible for the second section.
In general, the Form I-9 process uses the following steps.
- Your worker accepts their offer of employment.
- The worker must complete Section 1 before their first day of working for pay.
- Next, the employee returns the document to you.
- You are now obligated to fill out Section 2 of Form I-9 no later than the worker’s third day of employment.
Choose an Authorized Representative
First, you must choose who will be in charge of filling out I-9 forms at your organization. The authorized representative will be in charge of filling out Section 2. They should be trained on properly completing Form I-9 and how to correctly ask for identification.
Get the New Hire to Complete Section 1
Before the employee begins their first day of working for pay, they must fill out Section 1 of the I-9 with the following information.
- Name
- Address
- Birth date
- Email address
- Social Security number (given voluntarily)
- Citizenship information
- Phone number
Inspect the Worker’s I-9 Documents
While the employer is responsible for completing Section 2, this section also requires the appropriate identification documents. Have your employees read the list of identification documents. They can bring one document from List A. Alternatively, they can bring in a document from List B and another one from List C.
You should never tell people what type of identification to bring in because this could look like a disparate impact. For example, asking for a passport from every applicant may look like discrimination based on nationality or race.
For the same reason, you should be wary about making photocopies. If you do decide to photocopy the identification documents, you should make sure the photocopies are taken from every employee. You also must store the photocopies according to the same rules as Form I-9.
Finish Section 2
Section 2 must be filled out no later than the employee’s third day of paid work at your company. It is filled out by the employer. You must examine the identification documents your employee brought in to see if they are on List A, B, or C.
After verifying that the document is legitimate, you must fill out the following information.
- Document title
- Issuing authority
- Document number
- Expiration date
Afterward, you must fill out the employee’s first day of employment. Then, write your name, the company name, and the day’s date. Finally, sign the completed document.
Complete Any Supplements That May Be Necessary
In some cases, you may need to complete Supplement A or B. Supplement A is a preparer or translator certification, so it only has to be filled out if you used a preparer or translator to fill out the I-9. Meanwhile, Supplement B is for reverification and rehiring.
Supplement B is only necessary if the employment authorization must be reverified or you’re rehiring a previous worker. It may also be done if a legal name change is necessary.
If you’re rehiring a worker within three years of when you first hired them, you have the option of completing an entirely new I-9 or simply completing Supplement B. However, a new Form I-9 is always necessary if you’re hiring them after it’s been more than three years since you originally had them fill out the first Form I-9.
Store I-9 Forms Correctly
According to federal regulations, you are required to store the I-9 for three years after you hire someone. Alternatively, you must keep it for one year after the person’s employment ends. You are legally required to store the I-9 based on whichever date is later.
Important I-9 Tips to Remember
To be in I-9 compliance, there are some important tips you need to follow.
Fill Out Every Line
When filling out Form I-9, it’s important to fill in every line. If something doesn’t apply, put NA (not applicable) in the space. It is a $272 to $2,701 fine for each incorrect or incomplete entry, so make sure to complete every line.
Never Be Specific About the ID Employees Should Bring
Employees should never be told which type of identification to bring in. This can look like disparate treatment and lead to discrimination issues. Instead, give workers the lists of identification and ask them to bring in whatever works for them.
Don’t Let Employees Work More Than 3 Days Without an I-9
Legally, you must get the employee to complete Section 1 before they start their first day of paid employment. Then, you must complete the remainder of the form by the third day that the employee works for pay.
What Are the Penalties for Filling Out Your I-9 Forms Incorrectly?
The penalties for incorrect Form I-9s can increase if there is a pattern of I-9 issues or repeated violations. Paperwork violations can lead to penalties of $272 to $2,701, and this amount goes up when there are repeated violations.
If you knowingly hire someone who doesn’t have proper work authorization, the penalties are $698 to $27,894. The same penalties apply if you keep someone in your employ after discovering that they don’t have proper work authorization. For second and subsequent offenses, the penalties become $5,404 to $27,108. Criminal penalties are reserved for cases where the employer has exhibited a pattern of hiring unauthorized workers or knowingly hires someone who is unauthorized.
Discover the Best HR Compliance Practices for Your Small Business
Fast-growth and slow-growth companies are both likely to report storing I-9 forms properly, but this compliance level is likely an overestimate. There are many missteps that can be made in storing and filling out a Form I-9, so it’s important to take time and learn about common mistakes. Otherwise, businesses can end up facing hefty fines for non-compliance.
This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.