Hiring new employees involves more than just conducting interviews and extending job offers. One essential legal obligation for all U.S. employers is the completion of Form I-9, which verifies both the identity and employment authorization of every new hire. Form I-9 plays a critical role in maintaining compliance with federal hiring regulations and preventing unauthorized employment. As part of effective payroll processing services, proper I-9 processing ensures your onboarding system meets legal requirements from day one.

In this guide, we’ll explain what Form I-9 is, why it’s required, who needs to complete it, what documents are acceptable, and how employers can stay compliant with the law. If you’re unsure about I-9 rules or need help streamlining your onboarding process, this resource will guide you step by step.

What Is Form I-9?

Form I-9, officially known as the Employment Eligibility Verification Form, is issued by the U.S. Citizenship and Immigration Services (USCIS). It must be completed by both employers and employees during the hiring process to confirm that the employee is legally authorized to work in the United States.

Employers are required by federal law to ensure the form is filled out completely and correctly at the time of hiring. The I-9 process involves verifying identity and employment authorization through specific documents. Failure to properly complete or retain Form I-9 can result in audits, penalties, and legal consequences for your business.

Why Is the I-9 Form Required?

Form I-9 is a requirement under the Immigration Reform and Control Act of 1986, which was established to reduce the employment of unauthorized workers in the U.S.

It ensures employers hire individuals who are legally allowed to work in the United States.
The form helps deter illegal hiring practices and supports the enforcement of immigration laws.
It protects businesses by documenting due diligence in verifying a worker’s eligibility.
Noncompliance can lead to significant financial penalties, criminal charges, and reputational harm.

Who Needs to Complete Form I-9?

Every U.S. employer must complete Form I-9 for each employee hired for wages or other compensation.

This includes U.S. citizens, lawful permanent residents, and authorized noncitizens.
The requirement applies only to employees, not to independent contractors, volunteers, or unpaid interns.
Employers must retain each I-9 form for three years after the hire date or one year after termination, whichever is later.
Businesses of all sizes, from small startups to large corporations, are subject to these rules.

What Are the Sections of the Form I-9?

Form I-9 is used by U.S. employers to verify the identity and employment authorization of individuals hired to work in the United States. It is required for all employees, regardless of citizenship or immigration status. The form consists of three main sections, each with a specific purpose and completion timeline.

Section 1: Employee Information and Attestation

Completed by the employee on or before the first day of work.

In this section, the employee provides personal information and confirms their work eligibility. Details required include:

Full legal name
Other names used (if any)
Address (street, city, state, ZIP code)
Date of birth
Social Security number (SSN)
Email and phone number (optional)

The employee must also select one of the following four attestation boxes to declare their legal status:

A U.S. citizen
A noncitizen national of the United States
A lawful permanent resident (must include Alien Registration Number)
An alien authorized to work in the U.S. (must provide expiration date and document information)

The employee must sign and date the form, attesting under penalty of perjury that the information is true. If a preparer or translator assists in completing the form, their name, address, and signature must be included as well.

Section 2: Employer Review and Verification

Completed by the employer within three business days of the employee’s first day of work.

In this section, the employer is responsible for physically examining the employee’s original identity and work authorization documents. The employer must:

Review the documents to ensure they appear genuine and relate to the employee
Record document details in the appropriate columns:
- List A: Documents that establish both identity and employment authorization (e.g., U.S. passport, Permanent Resident Card)
- OR a combination of
- List B (identity only) and List C (employment authorization only) documents (e.g., driver’s license and Social Security card)

Record the following for each document:
- Document title
- Issuing authority
- Document number
- Expiration date (if any)

Finally, the employer must fill out the certification section, which includes:

Employee’s first day of employment
Name and title of the person completing the form
Employer’s business name and address
Signature and date of completion

Employers must keep copies of the Form I-9 and may optionally retain copies of the documents reviewed.

Section 3: Reverification and Rehires

Completed by the employer when updating or re-verifying work authorization.

This section is used in two situations:

Reverification: When an employee’s work authorization has expired and the employer needs to update their status
Rehire: If an employee is rehired within three years of the original Form I-9 date, this section may be used instead of completing a new form

The employer must:

Record the new document(s) provided by the employee
Include document title, number, and expiration date
Update the employee’s name if it has changed
Sign, date, and provide their name and title

Employers should never reverify U.S. citizens or lawful permanent residents with unexpired green cards. Reverification only applies to employees with temporary work authorization.

Additional Notes on Form I-9 Compliance

Employers must not ask for specific documents; employees may choose which acceptable documents to present.
Form I-9 must be retained for three years after the date of hire or one year after termination, whichever is later.
Employers must make Forms I-9 available for inspection by DHS, DOJ, or DOL officers upon request.

When Should the I-9 Form Be Completed?

Timing is a critical part of Form I-9 compliance. Employers must follow the official timeline:

Section 1 (employee’s section) must be completed on or before the first day of work.
Section 2 (employer’s section) must be completed within three business days of the employee’s start date.
If an employee is hired for fewer than three days, both sections must be completed on the first day.
Employers cannot request documents before the job offer has been accepted to avoid discriminatory practices.

What Documents Are Required for Form I-9?

Employees must present original, unexpired documents to verify identity and employment authorization. Documents are divided into three categories:

List A: Proves both identity and authorization to work
- Examples: U.S. Passport, Permanent Resident Card, Employment Authorization Document
List B: Proves identity only
- Examples: Driver’s license, state ID, school ID with a photo
List C: Proves employment authorization only
- Examples: Social Security card (without restrictions), U.S. birth certificate

Employers must physically examine these documents or follow DHS-approved remote verification methods when permitted. Photocopies or expired documents are not acceptable.

How Employers Should Complete and Store I-9 Forms

Proper completion and secure storage of Form I-9 is just as important as timely filing.

Use the most current version of Form I-9 available from the USCIS website.
Verify that documents provided by the employee are genuine and unexpired.
Store completed I-9 forms in a secure, confidential location, separate from standard personnel files.
I-9 forms must be made available for inspection by federal agencies such as ICE, DHS, or the Department of Labor, if requested.

Penalties for I-9 Noncompliance

Failing to comply with I-9 regulations can expose businesses to steep penalties, even for paperwork errors.

Paperwork violations can result in fines ranging from $272 to $2,701 per form.
Knowingly hiring or continuing to employ unauthorized workers may lead to fines up to $27,108 per employee.
Employers who show a pattern of illegal hiring may face criminal charges.
Noncompliance can also damage your company’s reputation and lead to loss of government contracts or business licenses.

How to Stay I-9 Compliant

To maintain compliance and avoid costly penalties, employers should establish strong internal processes for I-9 management:

Train your HR team on I-9 procedures, including legal timelines and acceptable documents.
Conduct internal audits at least once a year to identify and correct any I-9 errors.
Use E-Verify when required or to enhance your hiring compliance.
Develop a standard onboarding checklist that includes I-9 completion as a mandatory step.
Keep track of re-verification dates for employees with temporary work authorization to ensure ongoing compliance.

Need Help? Contact The Madtax

Ensuring I-9 compliance is not just a legal necessity,it’s a way to protect your business from serious financial and legal consequences. With strict government oversight, evolving regulations, and tight deadlines, managing I-9 forms can be overwhelming for busy employers.

That’s where The Madtax can help. Our experienced compliance professionals can:

Review and correct your I-9 forms and procedures for accuracy
Implement a streamlined onboarding process that includes I-9 best practices
Guide you through remote verification procedures when applicable
Help you prepare for or respond to an I-9 audit with confidence

Don’t leave your I-9 compliance to chance. Contact Madtax today and let us handle your employment verification process with precision, care, and full compliance support.

What Is an I-9 Form? Purpose, Requirements, and Employer Guide