Ensuring compliance with federal employment laws is critical for any business, and one of the most important requirements is the proper completion and maintenance of Form I-9. This form verifies the identity and work authorization of every employee. Failing to properly complete, store, and update I-9 forms can result in serious legal and financial consequences. With the increasing enforcement efforts by Immigration and Customs Enforcement (ICE), businesses must be proactive in conducting I-9 audits and preparing for the possibility of an ICE inspection.
Update: New Form I-9 Released
On April 2, 2025, U.S. Citizenship and Immigration Services (USCIS) released a revised Form I-9 for employment eligibility verification.
Changes include:
- “Noncitizen” replaced with “alien”
- “Gender” replaced with “sex”
- New edition date: 1/20/25
What you need to know:
- Older I-9 versions (dated 8/1/23) remain valid through 2026-2027.
- Employers using E-Verify should note terminology differences between the new and old versions.
What employers need to do:
- Obtain the updated form here.
- Decide whether to transition to the new form immediately, or continue using the valid older versions.
- Train staff on the language updates to ensure consistency, especially when using E-Verify.
Why I-9 Audits Matter
An I-9 audit is an internal review of employee documentation to ensure that all required forms are completed accurately and that your business is in compliance with federal law. The benefits of conducting routine I-9 audits include:
- Ensuring all employees are authorized to work in the U.S. and that forms are completed correctly, reducing the risk of fines and penalties.
- Avoiding costly errors. Even minor errors on an I-9 form can lead to significant fines during an ICE inspection. Regular audits help identify and correct mistakes before they become an issue.
- If ICE inspects your business, having a history of regular internal audits can demonstrate your commitment to compliance, potentially reducing penalties.
How to Conduct an Effective I-9 Audit
To ensure compliance, we recommend following this structured approach when auditing your I-9 forms:
- Review all active employee I-9 forms annually, and ensure that each employee has a properly completed form on file.
- Check for common errors like missing signatures, incorrect dates, and incomplete employer sections.
- Keep I-9 forms for all active employees in one place for easy access. Retain forms for terminated employees for at least three years from the hire date, or one year after termination, whichever is later.
- If errors are found, correct them according to U.S. Citizenship and Immigration Services (USCIS) guidelines, and initial and date any changes.
- Ensure your HR team understands the I-9 requirements and is trained in completing forms correctly. KMA can assist your internal teams with I-9 compliance, or you can outsource the entire undertaking to KMA.
- Schedule regular self-audits to stay ahead of potential compliance issues.
I-9 compliance should not be an afterthought. Proactively conducting audits and preparing for potential ICE inspections can help you avoid costly fines and disruptions in your workplace. By implementing a structured compliance program, training your staff, and maintaining thorough records, you can navigate employment verification with confidence.
If you need assistance with an I-9 audit or compliance strategy, the team at KMA is here to help. Contact us today to ensure your business is protected and prepared.