Massive I-9 audits on the way: How to prepare
July 9, 2009 by Sam NarisiPosted in: Law, Special Report
When the feds said their new immigration strategy was to crack down on employers’ hiring and record-keeping practices, they weren’t kidding.
Last week, U.S. Immigrations and Custom Enforcement (ICE) told 652 employers their I-9 forms were being audited. That’s more than the number of audits ICE conducted in the entire previous fiscal year. In addition to I-9s, many of the audits will also include subpoenas for EINs, payroll records and correspondences with the Social Security Administration regarding no-match letters.
The nationwide inspection follows an April announcement that ICE planned to focus the majority of its resources on prosecuting employers who hire illegal immigrants.
The list of companies being audited hasn’t been released. ICE has described the effort as a “first step,” meaning there will likely be more mass inspections in the near future.
What should HR managers do if they get a Notice of Inspection (NOI) from the feds?
Preparation is key. Employers must act quickly — the NOIs generally require HR to turn over all I-9s within three business days.
If I-9 records don’t pass muster with ICE, the agency could launch a criminal investigation. But even if there are no criminal charges, employers could face civil fines for faulty record-keeping.
An audit doesn’t always mean charges or fines are coming. After receiving an NOI, employers should:
- Respond quickly, even if it’s to ask ICE for a time extension
- Choose one point person to correspond with ICE — that will avoid any inconsistencies in the information given
- Notify all managers and employees who deal with I-9s and related documents
- Secure all applicable records — any missing documents could be seen as an attempt to destroy evidence or sabotage the investigation, and
- Consider conducting their own internal audit.
Tags: audit, I-9, ICE, immigration, Immigration and Customs Enforcement
July 10th, 2009 at 7:13 am
We have found that being prepared is key. We worked with a helpful company LegalEmployer.com. They are I-9 experts and are also E-Verify Designated Agents. They helped us to understand the ins and outs of I-9 procedures and rules and did an audit of our records. They pointed out areas where we needed to get more information. Should a federal audit come down we feel we are now prepared. It provided us peace if mind for very little cost. There are other compnies out there (i.e. I-9 HelpCenter.com,I9Consultant.com) We just happened to like Legal Employer, but I am sure any one of them could help avoid costly fines and provide you and your excutives peace of mind. I read one company was fined $150,000 last week and I believe Krispy Kreme was fined over $40,000 earlier this week. My advice – get an expert in your corner and be prepared.
-Izabella Burke
SVP, Human Resources
July 10th, 2009 at 10:30 am
Also a good practice is to utilize the Business Services Online SSA Website to verify all Social Security Numbers. This should elminate the “No Match Letters” if responded to quickly.
July 10th, 2009 at 11:28 am
Let me see if I understand. We’re going to provide all kinds of free social services, health care, etc., to illegal aliens, grant them impunity (basically), but we’re going to prosecute employers who hire them? Huh, go figure…
I’m very careful with I-9’s and don’t condone hiring illegal aliens, period. But I don’t condone focusing only on employers who do hire them either. If we can track a cow to the extent we know what herd the cow with mad cow disease came from, I find it very hard to believe we can’t also track people who enter our country legally to the same extent. The effort needs to be focused on deporting those who are not here legally and keeping people from entering illegally in the first place. Yes, employers who give illegal aliens a job need to be addressed, but that’s only one piece of the problem. Can’t solve it without focusing on all the areas that need to be fixed.
July 10th, 2009 at 11:54 am
Some of our employees have worked here for 15 to 25 years. Not all of those employees have I-9’s in their folders. Can I still fill out one for them or is it too late?
Thank you for all your great information.
July 10th, 2009 at 12:04 pm
You guys haven’t figured it out yet. This is part of the massive anti-capitalism crack down by the Feds. Read the papers, the few that remain; listen to the yammering innumerate heads on teevee. Watch any movie made in the last 30 years. They will all tell you that employers, companies, and corporations are the Bad Guys, not people who break the law. Prepare for more persecution and looting by the Feds and the states.
July 10th, 2009 at 12:29 pm
We have had our I-9’s inspected in the past , had no problems – we use the system now called E-Verify since 2001 and it has helped us remain compliant.
July 10th, 2009 at 1:06 pm
Massive?
I’m not sure I would call adding 652 employers to the hit list “massive” — but you should always be prepared.
We do periodic checks of I9s at all our locations and failure to complete I9s correctly results in a loss of points on an overall score. We provide regular training and specific guidelines.
Do what you’re supposed to with your I9s — inspect what you expect — and don’t worry about ICE.
Oh — and don’t knowingly hire undocumented workers!
July 10th, 2009 at 1:11 pm
Thank you John.
This is an unbalanced (but calculated) attack on business and unless those illegal workers who are found are penalized as well, it can be arguably a form of harassment.
Workers are also complicit in this “game” lest we should forget that. To be fair all the players should be penalized and swiftly to have any hope of being an effective detererrent. But then, that isn’t the point of the I-9 enforcement is it?
Soon, business will just plain find it too hard to continue ….what with the USA being the only one doing cap and trade (China/India just said NO WAY!) and monetizing the debt …it is not going to be long before 10-12% unemployment – or worse.
There are a number of other anti-business initiatives like this underway by our leader and his 30 plus “Czars” making Senate approved cabinet members inert…..as is our constitution.
Don’t be surprised if you see Joe Biden stepping down from (mental) illness suddenly to be replaced by some crazy socialist zealot…..
July 10th, 2009 at 1:40 pm
Government Anti Business Inititatives and Massive Anti Capitalism?
I-9 is actually a form called Employment Eligibility Verification Form enacted after the Immigration Reform and Control Act signed by Reagan himself in November 1986 after granting amnesty to illegal immigrants.
John and HR2, do us all a favor and just go back to the trailer park and watch Palin on Fox, will ya!
July 10th, 2009 at 2:41 pm
Help! If an employee give us a SS Card, how do we know its OK?
July 10th, 2009 at 3:51 pm
Rusty —
The USCIS does not expect you to be an expert in documents. You can download a copy of the “handbook for employers” at the uscis.gov site (look under immigration forms and page down towards the bottom for the I-9 form)
If it looks like a good SSN — that’s all you need to know
Unless you’re a government or state contractor (depending on the state) or live in MS/AZ or SC — in which case you need to be using Everify (ok, ok — the fed government contractors don’t have to do it quite yet).
G
July 10th, 2009 at 3:53 pm
Debbie, Workers hired before 1986 do not need to have an I-9 on file.
July 10th, 2009 at 4:07 pm
Form I-9, the one that does not require a picture ID (Voter Registration Card – List B), and SS card for List C. The employer is also not required to retain copies of the documents evidenced with regards to destroying documents to sabotage an investigation. The employer falls under Safe Habour when handled properly. Perhaps DHS should try being proactive and not reactive and fix the system.
July 10th, 2009 at 4:37 pm
Debbie,
I don’t think anyone answered your question. You aren’t the first person to say that. Certainly, you can complete an I9 for folks who have been there that long without one (unless they were hired before November 6, 1986). Just make sure you follow the guidelines from DHS. And, never backdate anything!
Good luck!
July 10th, 2009 at 11:02 pm
If I have an employee who refuses to provide our company with a copy of his SS card. He does have a passport and a driver’s license. He says he lost his SS card years ago. I have stated in order to work, I need to see his SS card. Is this true and do I need to insist he provides us with a SS card?
July 11th, 2009 at 3:35 pm
Reply to Debbie – you can check through the Society of Human Resources website and “chat” line with the experts – but I believe that employees with 20 years of work experience with the same company are “grandfathered” in and do not have to meet the I-9 form standards. This was the standard at least through 2008 when I did an internal company audit.
July 13th, 2009 at 7:09 am
Do you recommend attaching copies of the documents presented to the I-9 form?
July 13th, 2009 at 10:52 am
Debbie, employees hired prior to 11/6/86 do not need to have an I-9 on file.
July 13th, 2009 at 1:28 pm
@HR Director
The associate does not have to produce a SS card — in fact you cannot tell them what kind of ID they can present for the I9
If they have a passport — that’s a list A — it’s all you need.
You must accept any valid document from the back of the I9
July 13th, 2009 at 3:26 pm
How can they prove if you backdated it?
July 14th, 2009 at 12:55 pm
You can get a copy of the ID Checking Guide which clearly details what legitimate ID’s look like from all states and countries in North America (International Version available) too…..around $20…updated annually.
http://www.driverslicenseguide.com/
Not much left up to chance when you have these books on hand. Used them for years.
July 14th, 2009 at 4:41 pm
Debbie…It’s best if you document why you needed to complete a new form and keep that in the same location where you store your completed I-9 forms. I recently did an internal audit here and found a few missing forms. We completed new forms for them and noted why in a document now stored with them.
Kim…I would not recommend attaching a copy of the documents to the form. The Government can view these and may have an easier chance of finding errors on your completed I-9 forms. In this case less information is better
Parker…The current I-9 form is valid only so long before it is revised. For example the current form was (rev 2/2/09). If you use this form for an employee hired in 2008 they will know you back dated the information.
July 14th, 2009 at 8:52 pm
To Kim-
I attended a state SHRM annual conference and one suggestion that was given was to make a copy of the presented items for the I-9 and include with the employee I-9 file. They also recommended a separate I-9 file for each employee and that should be kept separate from the other employee record(s). That way with perhaps only 3 days prior notice for an I-9 audit – you will only need to pull that separate I-9 that includes all of the I-9 information only for each employee. No reason to give the auditors an opportunity to review anything else in the employee’s personnel file (confidential or otherwise).
July 16th, 2009 at 1:14 pm
We require ALL new hires to bring their Social Security Card at the time of hire. We make a copy and it is retained in our payroll dept. The reason for this is in IRS Publication 15 Circular E “Employer’s Tax Guide” (page 10) section 4 “Employee’s Social Security Number” “…If you do not provide the correct employee name and SSN on form W-2 you may owe a penalty unless you have reasonable cause…..” Our Payroll dept requires us to enter inot our HRIS all employee information EXACTLY as it appears on the SS card. HR keeps a copy of page 10 of Pub 15 and hands it out to applicants who balk at providing the SS card. This way we have no chance of someone giving us a wrong number, or a derivative of their correct name. This is done for EVERY employee so there can be no claim of discrimination.
Note that we do NOT tell them that the SS card is required for the I-9. The cover letter for our new hire package states:
“Please note – you will need to bring your social security card with you when we meet to complete your final paperwork. You will also need to bring 2 forms of identification – one from list “B” and one from list “C” (located on the back of the US Department of Justice Form I-9). In lieu of these 2 documents you may substitute one document from list “A”. ”
We make it very clear from the first contact with prospective employees that they will not be able to start work until ALL pieces of our new hire process are completed. This includes all information required in the new hire package.
July 16th, 2009 at 1:20 pm
You would be surprised at how many people have their name spelled incorrectly on their SS card and never realized it. Or how many people were given one name at birth and have a different name on their SS card (different from birth certificate). Or how many people have nicknames on their SS card. And we had one gal who was married 24 years and never had her name changed with the SS dept!
July 22nd, 2009 at 2:14 pm
We were audited for our I-9 forms a few weeks ago and came out just fine. As long as you are getting your information as required, and not hiring undocumented workers, you shouldn’t worry. It was a little time consuming but since we keep I-9 forms in a separate file, it was all in one place.
fyi…I did an audit on our files about 4 years ago and made sure we had everything in order. We keep updated photo ID’s on every employee and I have a spreadsheet that tracks when their ID is expiring and I need to get a new one. When someone changes their name, the I-9 form gets updated in the peroper area and copies are taken of their new ID with new name. The more work you put in before hand, the easier any audit will be. Good luck!
August 10th, 2009 at 3:11 pm
[...] start with the I-9 form. All employers are required to have these filled out by their employees. Federal agencies are stepping up their compliance audits of companies in an effort to crack down on illegal immigrants by going after employers. It is best [...]