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Don't Forget to Have All New Employees Complete Form I-9

The "Employment Eligibility Form," also known as "Form I-9," is one of the most common forms that employers are required to complete. This form requires all employers to verify that each employee hired after November 6, 1986, is authorized to work in the United States.

Form I-9 has remained substantially unchanged since 1991, despite changes made to the underlying immigration law in the intervening years. The Illegal Immigration Reform and Immigrant Responsibility Act of 1996 significantly changed the number and types of documents necessary to establish employment eligibility in the United States. The new Form I-9 released by the Department of Homeland Security (DHS) earlier this year finally brings the form into compliance with the immigration law by updating the list of documents that employees can use to establish their eligibility to work in the United States.

Previously Allowed Documents That Are No Longer Allowed

The most significant change to the Form I-9 is the elimination of five documents that could previously be used to establish both identity and employment eligibility. The following documents are no longer acceptable:

1. Certificate of United States Citizenship (Form N-560 or N-561)
2. Certificate of Naturalization (Form N-550 or N-570)
3. Form I-151, an outdated version of the Alien Registration Receipt Card (Green Card)
4. Unexpired Re-entry Permit (Form I-327)
5. Unexpired Refugee Travel Document (Form I-571)

Click here to see the lists of acceptable documents according to the IRS Web site.

Noncompliance Could Lead to Severe Penalties

The DHS can impose severe fines and penalties, both civil and criminal, for failure to comply with the Form I-9 procedure. Fines for "paperwork" violations range from $110 to $1,100 per employee, whether or not the employee(s) in question had the legal right to work in the United States. If the DHS determines that an employer knowingly hired unauthorized aliens, fines can reach up to $11,000 per employee. If the DHS determines that an employer has a pattern of knowingly hiring unauthorized aliens, the employer could be subject to criminal charges.

Click here to download the Handbook for Employers Instructions for Completing the Form I-9 (known as M-274 Rev. 11/01/2007).

For more information, contact Mike Calahan at 312-980-2996, Eric Ching at 312-980-2937 or your Blackman Kallick representative.

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.