What Is an I9 Form — And When Do I Need It for My Business?

What Is an I9 Form Used For?

Most people are pretty familiar with common employee forms like W2 and 1099, but what is an I9? Form I9, formally known as the Employer Eligibility Verification, is used by United States Citizenship and Immigration Services (USCIS) and is a form most used to verify the identity and legal authorization to work of all paid employees in the United States.

Who Needs to Complete an I9 Form?

Every employee, including remote workers, must complete an I9 form. Both employees and employers must complete elements of this form.

Do US Citizens Need to Complete an I9?

Yes, all US citizens will still need to complete an I9 form. While the government entity that requires this form has “Immigration” in the name, USCIS uses this information to verify that the employees are who they say they are so they can confirm that the employee is eligible to work in the USA.

Do Remote Workers Need to Complete an I9?

Yes, all employees must complete an I9, whether they are in-office or remote.

Do Part-Time Employees Need to Complete an I9?

Yes, all employees must complete an I9 form, regardless of how many hours per week they work.

Do 1099 Contractors Need to Complete an I9?

No, a 1099 contractor is not technically considered an employee. Only actual employees of a company are must complete this form.

What’s on an I9 Form?

The I9 form is very simple and straightforward, largely centering around employee identification. Both employees and employers must complete sections of the I9 form:

Employees

Employees provide basic personal identification information. They also provide government-issued identification to verify that the personal information on the form is accurate.

Employers

Employers review the ID documents provided by the employee and confirm that the information matches on both the ID and the I9 form. After confirming, the employer signs and submits the form within three business days of the employee’s start date.

What Identity Documentation Is Required for an I9?

To prove the individual’s identity and eligibility for employment, the employee must provide government-issued identification documents for review.

Some forms of identification, like a US passport, can confirm both identity and employment eligibility at the same time.

For those that don’t have a US passport, USCIS accepts multiple forms of ID that confirm identity and eligibility for employment separately. Examples include a driver’s license or military ID to prove identity, and a social security card or birth certificate to prove eligibility to work in the United States.

Form I9 itself includes lists of acceptable documents for easy reference for both employees as they collect their documents and for employers as they review them.

How Do I Submit Form I9?

Form I9 is not submitted to any government agency. However, in case of an audit, employers must store all I9 forms for current employees and the forms of employees that worked for the company for the past several years. While rare, it’s critical to keep these forms filed to avoid hefty fines — or even criminal prosecution. So how do you store these forms?

In-House Storage of Physical Forms

Keeping completed I9 forms in filing cabinets in your office is always an option. But you run the risk of losing this information in an unfortunate event like a flood or fire. If storing physical versions of the documents, consider creating copies and housing them in a different location as a backup.

Digital File Storage

Storing your completed I9 forms digitally can be much more convenient — and it’s definitely more environmentally friendly! (With a name like Green Payroll, we’re a little biased.) Like with physical document storage, storing electronically on your HR team’s computer invites the risk of losing those forms with a significant computer crash — or worse, deletion by a disgruntled employee. Storing digital information on personal devices or unsecured corporate networks increases the risk of compromising your employees’ personal information in the event of a cyberattack. If opting for digital storage, make sure you’re following best practices for digital security to reduce these risks.

Electronic Onboarding System

For optimal security and peace of mind, using a payroll system containing a Human Resource Information System (HRIS) is ideal. Proper usage of such an electronic onboarding system can allow for a streamlined transfer of documents and secure storage once received. Going with a paperless method (environmentally friendly!) allows for easy information transfer between the employee and employer. Many systems like this also allow for user-specific permissions, so employee information is only accessible by the team members who need access.

Regardless of the storage option selected, best practices are to keep this information on file for at least 4 years.

Conclusion

In conclusion, having a verified I9 on file for an employee and the ability to call this form into action in a clean manner, can help employers lessen the liability of hiring new employees and maintaining records.

While there are many ways to store these completed forms in case of an audit, electronic onboarding systems provide the most user-friendly and secure options.

To learn more about how Green Payroll can help your business with employee file storage, onboarding, benefits administration and more, contact us today!