What Is Form I-9?

Form I-9 – officially called the Employment Eligibility Verification Form may seem like another HR hassle that holds up the hiring process, but it’s a federal requirement to confirm someone’s identity and legal right to work in the U.S. 

Every new hire, from the small-town shop worker to the corporate executive, needs to deal with it. Whether you’re running a mom-and-pop bakery in Smallville, USA, or managing a tech startup about to set New York City alight, ignoring Form I-9 isn’t an option – a world of problems will eventually follow if you do. 

So, what makes Form I-9 so important? It’s a safeguard — for the employer and the country — ensuring that only authorized individuals fill the workforce. Employers don’t just avoid penalties; they contribute to fair hiring practices by following this process. Forget your beliefs on immigration, the Southern Wall, and deportation; the I-9 is in place to ensure a fair and equal USA. 

What Is Form I-9 Used For?

So, what’s the I-9 used for? Employers use it to:

• Prove you are who you say you are.
• Confirm you’re allowed to work in the U.S.
• Stay on the right side of U.S. Citizenship and Immigration Services (USCIS) rules.

Think of it as a filter. It blocks unauthorized workers while protecting employers from legal trouble. Ignoring this form isn’t just risky — it can get expensive very fast: fines, audits, and maybe even lawsuits. Immigration enforcement is remarkably vague on the level of penalties and even uses an enhancement matrix to determine the level of punishment they’re going to throw at you. 

The I-9 also helps combat identity fraud by making employees and employers verify documents. This form is even more of a headache if you’re in an industry with high turnover — like retail or food service. More hires mean more chances to mess it up. It can be tempting to cut corners, but it’s not worth it. Companies have to be extra sharp to avoid costly mistakes.

Employers also benefit from having a reliable process in place. A well-handled Form I-9 system shows that you’re serious about compliance. That’s not just for the government; it reassures employees, too. Workers are more likely to trust a company that plays by the rules. Building trust within your team can lead to better retention and a more substantial reputation overall. Additionally, Form I-9 ensures transparency within hiring practices. It levels the playing field by requiring the same documentation from everyone, minimizing the potential for bias or unequal treatment.

Who Must Complete Form I-9?

Here’s the short answer: almost everyone. If you’re hiring someone after November 6, 1986, you need this form. Let’s break it down:

• U.S. Citizens: Even American-born workers must verify their identity and eligibility.
• Non-citizens: They’ve got to bring proof they can legally work in the U.S.
• Employers: It’s your job to check and confirm those documents.

A small business owner with one employee? You’re still liable. The document applies to everyone, no matter how tiny the operation. Independent contractors, however, are usually exempt unless misclassified and should legally be considered employees. 

Misclassifying workers isn’t just a paperwork issue; it can easily lead to a minefield of penalties, taxes, or worse. Understanding who needs to fill out the form is crucial. It’s better to ask questions upfront than to face legal problems later.

Even remote employees working for U.S.-based companies must complete Form I-9. Employers hiring from afar should have a transparent verification process, especially with evolving guidelines around remote document checks. Compliance remains the same whether an employee is sitting in an office or working from a laptop halfway across the country.

Another area where confusion arises is unpaid internships. While many interns do not need to fill out Form I-9, any internship that provides payment or other compensation requires this verification. Employers should always clarify these distinctions to avoid inadvertent violations.

What Documents Are Acceptable for Form I-9?

Employees need to bring the proper papers to the table. Here’s how it works:

• List A: Covers both identity and work eligibility. Examples include a U.S. passport or Green Card.
• List B: Proves identity only. Think of a driver’s license or a state ID.
• List C: Shows work authorization. A Social Security card fits here.

However, there’s an important factor to remember. Employers can’t tell employees which documents to bring. It’s their choice, not yours. But once those documents are on your desk, it’s your job to inspect them. Photocopies aren’t viable, it must include originals only. 

However, this is an area you need to tread carefully. Asking for extra documents or being picky could land you in trouble for discrimination under the Immigration and Nationality Act (INA). If an employee feels singled out or mistreated, you could be looking at a lawsuit.

What if the documents seem suspicious? Employers are not document experts but must make a reasonable effort to verify authenticity. It isn’t about being perfect but showing you’ve done your due diligence. Employers who spot discrepancies should seek legal advice before making hasty decisions that could lead to discrimination claims.

A common pitfall is accepting expired documents. Even if the document looks official, outdated paperwork is not acceptable. Employers must remain vigilant about checking expiration dates and ensure compliance throughout the verification process.

How to Fill Out Form I-9

It’s just two sections, but getting it right matters.

Section 1: Employee’s Part

Employees fill this out on day one. They provide their name, address, and date of birth—the usual suspects. They also check a box showing their work status: citizen, permanent resident, or something else.

Common Pitfalls:

• Skipped fields.
• Picking the wrong work status.

If the employee doesn’t have a Social Security number right away, that’s fine—but they need to update it as soon as they get one. Names have to match the documents, too. A mismatch can cause big headaches. Employers should make sure new hires know the importance of accuracy.

Some employees might feel overwhelmed or unsure about what to fill in. Employers can guide them—without doing it for them—to ensure the form is completed correctly. A clear explanation upfront can avoid delays or mistakes.

Section 2: Employer’s Part

Employers have three business days after the start date to complete this. Review the employee’s documents and write down what you see: document titles, issuing authorities, and expiration dates.

Common Mistakes:

• Forgetting to sign
• Accepting expired documents

Remote hires make this tricky. The Department of Homeland Security (DHS) has allowed video-based checks during certain times, but keeping up with the rules is crucial. Long-term? Build a solid remote hiring policy to keep things consistent.

Employers should also train staff on what to look for in documents. Mistakes can happen when people aren’t sure what’s acceptable. A little extra effort upfront can save a lot of trouble down the road.

Section 2 also requires careful documentation of any follow-up actions, like correcting errors or updating expired work authorizations. Maintaining these records can make the difference between a smooth audit and a compliance nightmare.

Where to Submit Form I-9

The form doesn’t go to any government office unless someone asks for it. Instead, employers must keep it on file for a specific period:

• Three years after hiring or
• One year after the employee leaves (whichever comes later).

Forms can be stored physically or electronically, but accessibility is key. If ICE, DHS, or DOL comes knocking, you’d better have those forms ready. Digital storage systems with reminders for document expiration can be lifesavers during audits. Organized records aren’t just about compliance; they’re a sign of professionalism.

Employers should also consider periodic reviews of their Form I-9 storage systems. Are they secure? Accessible? Up-to-date? A proactive approach can help avoid unnecessary stress during an audit.

Do Employers Need To Retain Form I-9s?

Retention is non-negotiable. Stick to the timelines: three years after hire or one year after termination. Employers need a strategy to keep everything secure but easily accessible. Digital tools can help track deadlines and reduce clutter. Manual storage is risky; if you lose a form, you have a problem.

Employers unsure about retention rules should consult with legal or compliance experts. It’s always better to double-check than to guess. Missteps in retention can lead to fines, audits, or worse. Retention isn’t just about meeting legal requirements. Properly stored forms also make rehires or verifications smoother. 

How Do Employers Benefit From Form I-9 Management?

Compliance isn’t optional. Poor I-9 management can mean hefty fines or worse. But get it right, and you’ll have:

Smooth Hiring: No hiccups with missing or wrong forms.

Audit Readiness: Organized records keep you cool under scrutiny.

Error-Free Processes: Automation tools can catch mistakes before they’re a problem.

Good management isn’t just about avoiding penalties. It’s also about creating a better experience for employees. Workers appreciate a company that handles onboarding smoothly and professionally.

Frequently Asked Questions

Does Everyone Have To Fill Out an I-9 Form?

No. Volunteers, interns, and independent contractors usually don’t. But if someone’s an actual employee, then yes. That means that the vast majority of employees across the United States absolutely require an I-9. 

Is Form I-9 a Background Check?

No, the I-9 is not a background check. It’s about work eligibility, not criminal history. In fact, the I-9 form will most often never leave the employer’s office unless requested by various government agencies.

What Happens if There Is an Error on an I-9 Form?

Errors happen, but try to fix them right away. Follow USCIS guidelines and document corrections. It’s always best to be open and honest about any mistakes and NEVER try to cover anything up. Pro tip: Train your HR team to catch issues early.

Final Thoughts

Form I-9 is the gatekeeper of employment compliance. It’s not glamorous, but it’s necessary. Messing it up or not bothering with it isn’t worth the risk. Whether you’re managing a small team or a massive workforce, staying on top of these forms keeps you out of trouble and your business running smoothly.

Want an easier way to handle it? Look no further than ScoutLogic for streamlined I-9 management. We make compliance less of a chore. Beyond that, investing in compliance tools today protects your business from costly mistakes tomorrow.

David Garcia

David Garcia, co-founder and CEO of Scout Logic, is an industry leader in the bulk background check world. With his strategic acumen and expertise in the HR sphere, specifically in hiring, recruiting, legal compliance, background checks, and resume screening, he’s an invaluable asset and consultant.

David's counsel extends across the boards of ScoutLogic, YipitData, and Supplier.io, drawing from his impactful stints on the boards of Infutor and Avetta. With an extensive 25-year journey, he champions unparalleled B2B commercial leadership within data & analytics, significantly shaping the HR landscape.