Internal I9 Audit: How to Ensure Documentation is Correct
Managing employee documentation is an important aspect of HR and employment law compliance. Government agencies regularly update regulations around this documentation and increase fines, such as the recent increase in fines for I9 form violations.
An internal I9 audit could protect employers as the Department of Homeland Security (DHS) plans increased investigations and fines around work authorization documentation. Taking the time to conduct an audit could save time, money, and headaches in the long run.
Fines for I9 Violations
The DHS recently announced plans for increased inspections and significant fine increases for I9 violations. These violations include incorrect or incomplete paperwork, employing unauthorized individuals, identification documentation issues, and unfair employment practices for immigrants.
Incorrect or Incomplete Paperwork
I9 forms with missing or false information are subject to fines based on each incorrect form. Employers also need to ensure employees complete the most updated I9 form at the time of hire.
Current Fines – $281 per form.
New Fines – $2,789 per form.
You can find the most up-to-date I9 form on the USCIS website.
Employing Unauthorized Workers
Employers who hire individuals not authorized to work in the United States are subject to fines increasing with each offense.
First Offense:
Current Fines – $698 per violation
New Fines – $5,579 per violation
Second Offense:
Current Fines – $5,579 per violation
New Fines – $13,946 per violation
Third+ Offense:
Current Fines – $8,369 per violation
New Fines – $27,894 per violation
Failure to inform the DHS of continuing employment following final non-confirmation is also subject to increased fines.
Current Fines – $973 per violation
New Fines – $1,942 per violation
Identification Documentation Issues
Identification document abuse can take many forms. This could be a requirement for specific documentation or requiring further documentation after qualified documents have been presented.
Current Fines – $230 per violation
New Fines – $2,304 per violation
Employees can choose from a list of qualified identification documents to verify they are qualified to work in the U.S. The current I9 form lists qualified documentation, or employers can find an updated list on the USCIS website.
Unfair Employment Practices for Immigrants
Unfair employment practices occur when applicants or new hires are treated differently based on their immigrant status. Employers who discriminate against immigrants in their I9 procedures are subject to fines that increase per offense.
First Offense:
Current Fines – $575 per individual
New Fines – $4,610 per individual
Second Offense:
Current Fines – $4,610 per individual
New Fines – $11,524 per individual
Third+ Offense:
Current Fines – $6,913 per individual
New Fines – $23,048 per individual
An I9 audit will help ensure I9 procedures are implemented consistently and fairly for all new hires.
Common I9 Documentation Issues/Mistakes
As employee documentation requirements increase, it is not uncommon for employers to find mistakes when completing an I9 audit. These I9 Form issues include:
- Missing forms for current employees
- Incomplete information
- Missing authorization/identification documentation
- Missing signatures
An audit will help find and correct these errors, decreasing the threat of costly fines during an official government audit.
Conducting an I9 Audit
Employers can conduct an internal audit of all I9 documentation, or by auditing a sample of I9 forms. When auditing a sample, it’s important to ensure the sample is not biased. Make sure audited forms are a good representation of all forms completed by applicants or new hires.
If possible, it is best to complete an audit of all I9 forms on file. When collecting this documentation, make sure to include any updates or corrections previously made to the forms.
Carefully examine all documentation, checking for any omissions or incorrect information. Review each section of the form to ensure all information is completed. Review all information provided and make sure it is correct.
Review identification documents to ensure they meet the requirements of the I9 form in use for the period the form was completed. If an employee had temporary work authorization when the form was completed, have the documentation re-verified to ensure the employee in question still has work authorization.
Check all previous corrections during the I9 audit to ensure the corrections were completed correctly, with the appropriate documentation attached.
I9 Correction Best Practices
If an I9 audit reveals any mistakes or omissions, corrections can be made. Employers are only able to make corrections to sections 2 and 3 on the form.
If an issue is found in section 1 of the I9 form, the employee must make the correction. Have the employee draw a line through the incorrect information and enter the correct information. They should then initial and date the correction.
Employers can use the same method to make corrections to sections 2 and 3 of the form. Attach a signed and dated statement explaining the reasons for any corrections made. If the employee in question no longer works at the organization, attach a signed and dated statement explaining why corrections cannot be made.
When completing an I9 audit, do not try to cover up any needed corrections. If multiple errors are found, a new I9 form can be completed, but it should be attached to the original form with a signed statement explaining why the new form was necessary.
Protect Against Employment Law Violations
Employment law is constantly changing and requires diligence to ensure all documentation and other requirements are met. It’s important to regularly audit and review employment practices to ensure continued compliance and protect against costly fines, penalties, and lawsuits.
If you need assistance with conducting an I9 audit or reviewing any other employment practices, HR Service, Inc. can help. Check out how our HR professionals can review your practices and ensure they meet employment law requirements.
Written By: Penny Clark & Liz Warren, PhD