By: Milena Pavlovic, Client Payroll & Benefits Director 

Form I-9: What Every Employer Needs to Know 

Hiring new employees is exciting—but along with building your team comes the responsibility of staying compliant with employment laws. One of the most important parts of the onboarding process is Form I-9, Employment Eligibility Verification. 

If you’re an employer in the U.S., you’re required by law to complete and retain this form for every employee. Here’s a quick guide to what that means for your business. 

A Brief History 

Form I-9 was introduced in 1986 under the Immigration Reform and Control Act (IRCA). Since then, it has become a standard part of the hiring process, ensuring that all employees—citizens and noncitizens alike—are authorized to work in the United States. 

Why It Matters for Employers 

For employers, the I-9 isn’t optional—it’s a legal requirement. Here’s why it’s critical: 

• Compliance: Ensures you’re meeting federal law.
• Risk Management: Avoids costly fines and potential penalties for paperwork violations or unauthorized hires.
• Audit Preparedness: Government agencies like Immigration and Customs Enforcement (ICE) may request your I-9 records. Having them accurate and organized protects your business.

What You’re Required to Do (What we will do on your behalf) 

Every time you hire a new employee, you need to: 

1. Have the employee complete Section 1 on or before their first day of work.
2. Review the employee’s documents that establish identity and work authorization.
3. Complete Section 2 within three business days of the hire date.
4. Reverify when necessary (for employees whose work authorization expires).

A key point: you must allow employees to present any acceptable document(s) from the official list. Asking for specific IDs can open the door to discrimination claims. 

Retention Rules 

Completing the I-9 is only half the job—you also have to keep it. Retention rules are very specific: 

• Three years after the date of hire, or
• One year after the employee leaves,
• Whichever is later.

You can store I-9s on paper, microfilm, microfiche, or electronically. What matters most is that you can produce them within three business days if requested during an inspection. 

Staying Compliant: Best Practices for Employers 

To protect your business: 

• Train your HR or onboarding staff on I-9 requirements.
• Use electronic I-9 systems that are USCIS-compliant to reduce paperwork errors.
• Perform internal audits periodically to catch and correct mistakes before they become issues.
• Stay current with updates—USCIS revises the I-9 form from time to time, and using an outdated version can cause compliance problems.

Bottom Line 

Form I-9 may feel like just another form, but for employers, it’s a legal obligation with real consequences. Proper completion, timely verification, and careful retention protect your business from fines, audits, and legal risks. 

Getting the I-9 process right isn’t just about compliance—it’s about safeguarding your company while building a strong, lawful workforce.