Form I-9 Audits on the Rise. Are You Compliant?

Jul 9, 2018 | Hiring an Employee, Labor Laws

Form I-9 audits are on the rise. Household employers should check their compliance with the law to avoid costly fines and penalties if audited.

Household employers are strongly encouraged to review their Form I-9 practices as soon as possible. Form I-9 audits have significantly increased over the past eight months and failing to comply with federal requirements can result in thousands of dollars in fines.

Background

U.S. Immigration and Customs Enforcement (ICE) says it has already conducted 2,282 employer audits this fiscal year. That’s a 60 percent increase over the entire number of investigations conducted during the previous fiscal year.

Many of these audits have focused on businesses. However, ICE says it wants to create a “culture of compliance” for employers. The goal is to eliminate the “magnet” of U.S. jobs, which is thought to be a major incentive for illegal immigration.

How to Complete Form I-9

With this increased enforcement in mind and the substantial penalties that can arise even with unintentional violations, household employers should make sure they’re complying with Form I-9 requirements.

All U.S. employers – including families that hire household help like a nanny – must ensure proper completion of Form I-9 for people they hire to work in the United States. This includes citizens and noncitizens. Form I-9 is used for verifying their identity and employment authorization.

Step 1

New employees must complete and sign Section 1 of Form I-9 no later than the first day of employment.

Step 2

Within three business days of the date employment begins your employee must present you with an original document or documents that establish their identity and employment authorization.

Step 3

You must examine these documents and determine whether they reasonably appear to be genuine and relate to the employee. Then record the document information on Form I-9. The list of acceptable documents is included with the form.

Step 4

Employers must retain Form I-9 for either three years after the date of hire or for one year after employment is terminated, whichever is later. You do not need to file Form I-9 with any federal agency. However, the form must be available for inspection by the Department of Homeland Security, Department of Labor, or Department of Justice.

Penalties for Hiring Unauthorized Workers and Form I-9 Mistakes

Hiring employees without complying with employment eligibility verification requirements is a violation of the law. If you fail to properly complete or retain Form I-9, you could be subject to civil money penalties.

A first-time offense for knowingly hiring and continuing to employ unauthorized workers will cost you at least $538 and up to $4,133. Subsequent violations can cost you as much as $21,563.

Something as simple as failing to confirm an employee dated their Form I-9, for example, can result in a penalty of up to $2,156.

GTM Can Help

We can help guide you through Form I-9 and all of the other nuances associated with domestic employment. There are plenty of ways to get tripped up and we’ll help you remain compliant and legal. Let us manage your nanny taxes and payroll and forget about the risks, worries, and hassles of doing it yourself. Call (800) 929-9213 for a free, no-obligation consultation with a household employment expert.