With the Trump administration set on increasing efforts to tackle illegal immigration, businesses are left with questions surrounding the effect these efforts may have on them. One area in particular is I-9 audits: under the first Trump administration, I-9 audits increased to 6,848 in 2018 from 1,691 in 2017. Experts and business owners expect an increase in I-9 audits during the second Trump administration. This expectation opens up new questions surrounding the process of an I-9 audit, what these audits actually entail, and the kinds of paperwork businesses should be expected to produce if the U.S. Immigration and Customs Enforcement agency and Homeland Security Investigations inform you of an audit.
Of course, I-9 audits are not a new process. At Payday HCM, we’ve had plenty of clients ask us questions about what to expect from an I-9 audit and the kinds of documents they should be expected to produce. Without knowing where to look for the proper resources, finding the answers to these questions can be difficult. We want to ensure that all businesses—whether they are our client or not—have access to the right information to ensure their business stays prepared for any scenario.
In this article, we’ll go over what you can expect from an I-9 audit. We’ll go over what an I-9 audit is, the rules and procedures surrounding an I-9 audit, the kinds of documents you’ll be expected to produce in an I-9 audit, and how you can best prepare for an I-9 audit. By the end of this article, you’ll be at a great starting point for helping your organization prepare for any possible scenario that may come your way.
In this article, you will learn:
What Is An I-9 Audit?
Firstly, we’ll start by going over what an I-9 audit is, the history of the I-9 form, and how you’ll be informed of whether your business will be audited.
History of the I-9 Form
The Immigration Reform and Control Act of 1986 first established that employers must verify the identity and employment eligibility of potential employees. The act also established criminal and civil sanctions for any employment-related violations.
As such, a system was established for employers to verify select documents so that they may establish an employee's identity and verify their eligibility for employment. The form I-9 is the vessel for employers to perform this verification.
I-9 Audit
Given the requirements of verifying employee identity and eligibility to work, employers are also required to retain copies of I-9 documents in case of a possible inspection. This inspection is what an I-9 audit is.
When it comes to an I-9 audit, an employer can choose to perform an audit on themselves, or ICE can choose to perform an I-9 inspection. Employers will receive a Notice of Inspection (NOI), after which employers have three business days to provide the requested documents in the NOI.
An example of a Notice of Inspection letter from the U.S. Immigration and Customs Enforcement. Photo courtesy of the American Immigration Lawyers Association.
When considering an internal I-9 audit or in the case of an I-9 inspection performed by ICE, it is important to note that employers cannot perform an audit that may violate the sanctions and anti-discrimination provisions of the Immigration and Nationality Act.
What Do I Need To Do During An I-9 Audit?
Now that we have a better idea of what an I-9 audit is, we’ll go over the actual documents you should be prepared to have in case of an audit.
What Forms Do You Need To Provide In An I-9 Audit?
When it comes to an I-9 inspection, the NOI will inform you of what forms you need to provide. This likely will include I-9 forms for all current or terminated employees in the required timeframe. Employers are not required to retain copies of documentation presented by employees for employment and identity verification, but if copies of these documents do exist, they should be included with any requested I-9s.
Employers who participate in the E-Verify program and choose to use an alternative procedure for remote examination of documents, you must make and retain copies of any documents provided. Employers who choose to make copies of employee documentation must do so for every employee. These copies must be retrievable and consistent with the standards outlined by the Immigration and Nationality Act.
Alongside the I-9 forms, ICE may also request a list of employee names, recent payroll records, and names of independent contractors used by your business. If you work with an HCM provider who handles your payroll and HR processes, you should inform them of the NOI immediately so they can establish a relationship with ICE and submit relevant documentation.
What Does ICE Look For During An I-9 Audit?
Generally, an I-9 audit is performed in order to identify any possible discrepancies or violations when it comes to the required documentation and verification of employee identity and eligibility of employment. This can range from incorrectly filled-out forms to document fraud or the known hiring of undocumented workers.
When it comes to paperwork violations, this can include things like missing dates or incomplete document numbers. Larger paperwork violations can include failure to complete the I-9 within three business days of the employee’s start date, no signature, failure to ensure the employee attests to their citizenship or immigration status, failure to verify the employee’s documents, and failure to reverify workers who have expiring work authorization.
When it comes to verifying documents during the process of filling out an I-9, an employer need only verify that the documents appear to be genuine and relate to the person presenting them. Employers are not expected to be document experts.
Once all of the necessary documentation is submitted, it can take up to a few months or up to a year to fully review the documents. Once the inspection is finished, employers will receive either a Notice of Inspection Results (aka a “Compliance Letter”) or a notice of any identified issues with their forms or possibly a Notice of Intent to Fine.
A list of possible communications that could be received upon completion of an I-9 audit. Photo courtesy of U.S. Immigration and Customs Enforcement.
How To Prepare For An I-9 Audit
Finally, we’ll go over the best ways that your business can prepare for a potential I-9 audit and how you can ensure compliance.
Perform An Internal I-9 Audit
The best way to ensure your business is prepared for a potential I-9 audit by ICE is to perform your own internal I-9 audit. This audit should check for any potential discrepancies that may be identified in a real audit, including incomplete or missing forms and verification of correct information in completed forms.
The Society of Human Resources has a helpful guide for businesses looking to perform their own internal audit. ICE also has its own guide for businesses that are planning on performing an I-9 audit.
Correcting Mistakes On An I-9 Form
When it comes to performing an audit and actually correcting any mistakes found on an I-9 form, employers should be careful with how they choose to correct these mistakes. Generally, most mistakes can be corrected on the form itself so long as the correction is initialed and dated on the form.
In cases where employers issue corrections to I-9 forms, a memo should be attached to the corrected form to indicate what changes were made and when. Employers shouldn’t use things like White-Out or other corrective materials to make changes to I-9 forms.
Employers should notify their employees of an internal I-9 audit. In some cases, employers can ask employees to verify that information in Section 1 of the I-9 form is correct and follow the outlined procedure for correcting any information—any changes should be performed, initialed, and dated by the employer.
In cases of a missing I-9 form, employers should notify the employee of the mistake and ask them to provide the required documentation. The employee should be provided with a time frame for providing documentation. If the employee is unable to provide documentation or authorized receipts of documentation, the employer should either terminate the employee or place them on a leave of absence until compliance can be established.
Stay Prepared, Stay Compliant
With the possibility of the frequency of I-9 audits increasing, many businesses are wondering what they need to do to stay compliant. Without the proper answers to these questions and the right resources for ensuring compliance, businesses may be faced with hefty fines or potential legal problems. Making sure that the I-9 forms for your employees are correct and in order can help save your business time and money, as well as relieve any stress for you and your employees. By utilizing this article and the resources provided, you’ll be able to take the first step in your journey towards total compliance.
Having accurate data in case of an I-9 audit starts with a thorough and effective onboarding process. Check out our article on five tips for streamlining your onboarding process in 2025.
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