This is the worlds leading source of financial content on the web, ranging from market news to retirement strategies, investing education to insights from advisors.
Forex Forever!

The Purpose Of The I-9 Form

Author: Andrew Williams

The government recognizes that the opportunity for employment is one of the most important magnets attracting illegal immigrants to the United States, as one federal report states. To help prevent the influx of illegal immigrants, employers in the United States are only allowed to employ workers who can prove their identity and their eligibility to work in the country. This determination is made by having newly hired employees complete Form I-9, Employment Eligibility Verification, which requires them to provide certain documents showing who they are and that they are legally allowed to work here. (See Step-By-Step: How to Fill Out An I-9 Form.)

A little history

The Immigration Reform and Control Act was enacted in 1986 to legalize about three million illegal aliens while at the same time attempting to deter future illegal immigration. As a result, Form I-9 was created to require newly hired workers to show eligibility to work in the U.S. Originally, 29 forms were acceptable to establish a worker's identity and eligibility to work in the U.S.; under a 1998 interim rule, this number was reduced to 14.

Sanctions on employers

Employers who fail to comply with I-9 completion and retention rules can be penalized severely. Knowingly hiring and continuing to employ unauthorized workers can trigger fines ranging from $375 to $16,000 per employee, depending on the nature of the violation (e.g., failing to complete the form, participating in document fraud) and whether the violation is a first or subsequent offense. Substantive violations, such as failing to produce a form for inspection by the Immigration and Customs Enforcement (ICE) range from $110 to $1,100. In February 2015, a temporary staffing firm was hit with a $227,000 fine for claiming that it had verified the eligibility to work in the United States of the 242 employees it hired. Despite signing Form I-9 under penalty of perjury that the information was correct, the firm had not looked at the actual documents (only photocopies).

However, technical violations of I-9 requirements won't be penalized immediately (employers will be notified of the violations and given 10 business days to correct the errors). Technical violations include:

  • Failure of the employee to date the form at the time employment begins
  • Failure to provide the date that employment begins
  • Failure to date the employer section of the form within three business days of the date that employment begins
  • Failure to provide the date of rehiring an employee in the section of the form used for rehiring
  • Failure to indicate that an employee is under the age of 18

An employer who can demonstrate good faith compliance has a rebuttable defense to any penalty that the government attempts to impose. Once this is done, it is up to the government to then show that the employer did not act in good faith.

Form I-9 misconceptions

When you're hiring, firing or recruiting someone, you cannot consider national origin and citizenship or immigration status; using this information in employment decisions is discriminatory. This means that an employer cannot use the I-9 form as a prerequisite to making an offer of employment because merely suspecting that someone may be ineligible and refraining from a job offer as a result can be discriminatory. The form is only completed once a person has been offered a job.

Form I-9 has not been replaced by E-Verify, an online method of quickly determining eligibility to work in the United States. Completing the Form I-9 for each newly hired employee is still mandatory, even if an employer voluntarily opts to use E-Verify.

The Bottom Line

Being an employer entails many responsibilities to the government. Properly completing, retaining and producing Form I-9 upon request is one of these obligations. (You may also be interested in reading Filling Out 1099 Forms and Filling Out The W-9 Form.)

last five articles

#415 Best Ways to Send Large Sums of Money Abroad

Author: Michael Davis

Every year, there are an estimated 6 million households in the United States that send over a combined billion dollars abroad. Whether those funds are for family or friends, or to purchase international assets, it is often difficult to send large sums of money. With so many options available, peo... see more

#179 The Enemy of Retirement Security: Procrastination

Author: Michael Jackson

Last year, I signed up for a program called "Connections" through my college alma mater. The program is designed to bring a group of the college's current juniors and seniors to the big city, for a pow-wow with both recent graduates and ancient grads like myself, who work in the students' prospec... see more

#391 7 Solutions for Homeowners Struggling with their Mortgage

Author: Michael Smith

If you met the prerequisites to purchase your home but are now struggling to make your mortgage payments, you're not alone. According to RealtyTrak, 1 in every 1,210 homes is in foreclosure, and in some states that number is much higher. In New Jersey, it's 1 in every 451 homes; in Nevada, it's 1... see more

#54 How to Avoid the 6 Most Common Tax Audit Triggers

Author: Jacob Harris

There is perhaps no single word in the financial dictionary that triggers as much fear and trepidation as the word audit. Many taxpayers have nightmares about having to deal with this, but those who follow the rules and report their income and deductions correctly can rest easy knowing that they ... see more

#457 Working Longer Vs. Saving For Earlier Retirement

Author: Christopher Smith

As life gets in the way, many people think, "I will just work longer rather than worry about saving right now." (See The New Retirement Age.) Saving can be very difficult when you are trying to meet the monthly bills and put children through college.Working Longer Doesn't Always Wo... see more