By: Arron Bennett, Founder – Bennett Financials

Staying up-to-date on evolving regulations is key to maintaining effective I-9 compliance.

With the many duties HR professionals face throughout the hiring process, I-9 compliance may sometimes seem like a minor issue that does not require immediate attention. However, overlooking compliance measures can result in significant challenges.

Treating I-9 compliance as a priority is similar to maintaining guardrails on a highway—it serves as a protective measure that helps companies avoid costly penalties. If you are hiring, it is important to approach I-9 compliance with diligence, regardless of the size of your company. Even a single oversight may lead to fines that could have a notable impact on business finances.

Understanding I-9 Compliance

The Employment Eligibility Verification form, commonly known as the I-9, is required for all new hires, including both U.S. citizens and non-citizens. It helps verify that employees are legally permitted to work in the U.S. and supports fair hiring practices.

Basic compliance involves ensuring the employee portion of the form is accurately completed by new hires on or before their first day of work. Employers must then finalize their portion within three business days of the worker’s start date. Completing the form requires reviewing and certifying documents that are considered acceptable for verifying identity and work eligibility.

The I-9 must be retained for either three years after the date of hire or one year after employment ends—whichever is later. Additionally, companies are required to store these forms in a way that allows for prompt inspection by government officials if requested.

The Ongoing Challenge of Compliance

One common mistake companies may make with the I-9 is assuming that completing the form is the only necessary step. In reality, maintaining compliance is an ongoing process that includes monitoring regulation updates, conducting periodic audits, and refining internal procedures.

Training plays a crucial role in I-9 compliance. Establishing a consistent and easy-to-follow framework can help HR teams understand the risks associated with non-compliance. When changes to I-9 requirements occur, companies benefit from updating processes and training materials in a timely manner. Ideally, HR teams should receive notice of regulatory updates as early as possible to prepare accordingly.

To support compliance efforts, companies may find it useful to integrate technology tools into their processes. Many hiring platforms offer features that streamline verification, while some automate updates to help ensure compliance with evolving regulations. Digital tools and HRIS systems may assist in reducing human errors and help companies stay on top of necessary compliance steps.

Automated platforms can also provide support in addressing concerns related to discriminatory hiring practices. For example, limiting the type of documents accepted for employment eligibility may be considered discriminatory. By providing guidance on all valid documentation options, HR platforms can assist companies in adhering to legal requirements.

Additionally, having a structured hiring sequence is essential. For instance, requesting I-9 documentation before extending an official job offer is not permitted. An automated hiring platform may help guide HR employees through the correct hiring sequence to minimize the risk of procedural errors.

The most important thing for companies to keep in mind is that the I-9 serves a greater purpose beyond administrative tasks. It functions as a security measure designed to help companies reduce legal risks while supporting a compliant workforce. By prioritizing accuracy and consistency in I-9 processes, companies can strengthen their approach to compliance.

Every step taken toward improving I-9 compliance contributes to reducing the likelihood of potential fines, operational challenges, and reputational concerns.

Arron Bennett founded Bennett Financials with a mission to reshape the accounting industry by moving beyond traditional tax preparation toward proactive financial strategy. His firm provides financial leadership that has helped small businesses identify significant tax savings. His fractional CFO approach offers strategic financial expertise aimed at fostering growth and maximizing profitability, contributing to multiple client successes.

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or regulatory advice. I-9 compliance can vary depending on specific circumstances and changes in the law. Readers are encouraged to consult with qualified legal or HR professionals to address their individual compliance needs. Bennett Financials does not assume responsibility for any actions taken based on the information presented in this article.

Published by Drake M.