Employer Compliance 101: Form I-9 and E-Verify Explained
There’s no denying it: we’re living in tense times when it comes to the legality of citizens and workers in the U.S.As an employer, that means it’s more important than ever to cross your T’s and dot your I’s — especially when it comes to Form I-9 for all of your W-2 employees.
Compliance isn’t optional here. Let’s go over what Form I-9 and E-Verify are, why they matter, and how to stay on top of your record-keeping.
What is Form I-9? What about E-Verify?
Form I-9 is a mandatory form that every U.S. employer must complete to verify the identity and work eligibility of each new W-2 employee. Without it, your business can face penalties ranging from $288 to over $2,000 per form — and hiring someone who’s not authorized to work in the U.S. can cost you at least $716 per worker for a first offense.
E-Verify, on the other hand, is an optional online system that confirms the information on Form I-9 against federal records. It’s one extra step, but it helps catch errors early and ensures compliance. This is especially helpful if your state or contracts require it. Some employers voluntarily use E-Verify to show due diligence in case of audits or inspections.
States requiring E-Verify for all or most employers:
Alabama – All employers
Arizona – All employers
Florida – Private employers with 25+ employees
Georgia – Private employers with 11+ employees
Mississippi – All employers
North Carolina – Employers with 25+ employees
South Carolina – Employers with 100+ employees (phased in for smaller employers)
Tennessee – All new hires, public and private
Utah – All employers (with grace period for small businesses)
States requiring E-Verify for public employers or contractors:
Colorado, Idaho, Indiana, Louisiana, Michigan, Minnesota, Missouri, Nebraska, Oklahoma, Pennsylvania, Texas, Virginia, and West Virginia.
You must keep a completed Form I-9 on file for every employee for three years after their hire date or one year after they leave the company, whichever is later.
Form I-9 is not required for volunteers, contractors, or any other worker who doesn’t receive a W-2.
When does an employee fill out Form I-9?
An employee must complete Section 1 of Form I-9 on their first day of work.
Make it a standard part of your onboarding checklist, alongside tax forms (W-4, W-9 as needed), background checks, and drug screenings.
Employers must review and complete Section 2 within three business days of the employee’s start date.
What the employee will need to bring:
Employees must provide documents that verify both their identity and authorization to work in the U.S. They can either present one document from List A or one each from List B and List C.
Acceptable Documents
List A (establishes both identity and work authorization)
U.S. Passport or Passport Card
Permanent Resident Card (Green Card) – Form I-551
Employment Authorization Document (EAD) – Form I-766
Form I-94 with foreign passport
Form I-551 stamp or Machine-Readable Immigrant Visa (MRIV)
List B (establishes identity only)
Driver’s License or ID card
Student ID with photo
Voter registration card
U.S. Military card or draft record
Native American tribal document
Merchant Mariner Document (U.S. Coast Guard)
Canadian driver’s license
For minors or special placements: school or medical records (with parent/guardian completing Supplement A if applicable)
List C (establishes work authorization only)
Original or certified birth certificate
Consular Report or Certificate of Birth Abroad
Native American tribal document
ID card for resident citizens (Form I-179)
Form I-94 Arrival/Departure Record
Travel Document
If in some case your employee is getting a document replaced, a receipt can act as temporary proof until the replacement document comes in. This document must be replaced and come in within 90 days of employment, however.
How to Complete Form I-9
Section 1 (Employee):
The employee fills out their personal information, citizenship or immigration status, and, if applicable, their Alien Registration Number, USCIS Number, or foreign passport information. Make sure it’s signed and dated.
If you use E-Verify, employees must also include their Social Security number.
Section 2 (Employer):
Within three business days of the employee’s start date, you’ll examine their documents from the lists above, confirm their authenticity, and record the following:
Document title and issuing authority
Document number and expiration date (if any)
Then sign and date Section 2 to certify that you’ve reviewed the employee’s documents in person.
Where Do I Submit Form I-9?
Unless your business operates in a state that mandates E-Verify, you don’t need to submit Form I-9 to any agency. Instead, it should be securely stored and available in case of inspection by:
The Department of Homeland Security (DHS)
The Department of Labor (DOL)
The Department of Justice (DOJ)
If your business is required (or chooses) to use E-Verify, you’ll submit the data through the official E-Verify portal within three business days of the employee’s start date. If you’re unsure whether your business must enroll in E-Verify, consult a qualified employment attorney or your state’s Department of Labor.
Don’t wait for an audit to realize your business has gaps. Take the time now to ensure every W-2 employee has a properly completed Form I-9 on file, stored securely, and ready for review. A few minutes of diligence today can save you thousands in penalties (and a major compliance headache) later.