Running a small business comes with enough challenges—hiring, payroll, taxes, customer service. But one legal requirement often flies under the radar: Form I-9 compliance.
If you’re hiring employees (even part-time or temporary), you’re required by federal law to complete a Form I-9 for each one. And if you don’t? You could face steep fines—even if you're a company of fiveWhat is Form I-9?
Form I-9, or the Employment Eligibility Verification form, is used to confirm that a person is legally allowed to work in the U.S.
All employers—regardless of size—must complete this form for each new hire, even U.S. citizens. It’s not optional, and yes, small businesses are included.
Here’s a quick overview:
1. Have your new employee complete Section 1
On or before their first day of work.
2. You (the employer) complete Section 2
Within three business days of the employee’s start date. You must examine original documents (no copies).
3. Store the completed form properly
Keep I-9s on file for 3 years after hire or 1 year after termination, whichever is later.
4. Make forms available for inspection
ICE or DHS can audit your records at any time—with just 3 days' notice.
You don't need to complete an I-9 for true independent contractors. But if you're treating them like employees—setting their hours, giving them equipment, directing their work—you may be misclassifying them.
That’s one of the biggest audit risks for small businesses. When in doubt, consult an I-9 compliance expert.
Hiring remote workers? You still need to complete the I-9—but Section 2 becomes tricky if no one is there in person.
i9 Intelligence offers a Remote I-9 Verification service built just for small businesses. No travel. No training. No guessing. You outsource it—we handle everything.
Learn more about our remote I-9 solution.
Penalties can range from $288 to $2,861 per form—and that adds up quickly. Employing unauthorized workers? That can climb to $28,619 per person.
Many small businesses don’t realize how serious I-9 enforcement is—until it’s too late.
Take 60 seconds to see what your exposure could be with our I-9 Risk Calculator.
At i9 Intelligence, we help small businesses across the U.S. stay compliant, save time, and reduce their audit risk.
Whether you need a better process, help verifying remote hires, or want us to handle everything—we’re here to help.
Book a free I-9 compliance call and speak with our I9 compliance experts.
