Most small businesses don’t realize that I-9 compliance is federally required for every new hire, including part-time, seasonal, and sometimes even 1099 workers. Even one missing or incorrect form can result in fines up to $2,861 per violation—and multiple errors add up fast.
ICE has quadrupled enforcement since 2019, and small businesses are not exempt. In fact, smaller companies are often more vulnerable because they:
While traditional I-9s aren’t required for independent contractors, misclarification is one of the most common triggers for audits. If your 1099s function like employees, you could be liable.
When in doubt, talk to our I-9 compliance experts. We’ll help you determine who needs I-9 verification and who doesn’t.
Yes. More businesses—especially government agencies and large enterprises—are asking vendors and partners to prove workforce compliance.
“We’ve helped dozens of small businesses strengthen their I-9 processes to win contracts, pass audits, and stay in business. In today’s climate, compliance isn’t just about avoiding fines—it’s a competitive advantage”
- Jed Butler, CEO, i9 Intelligence
If you meet any of these, you’ll need to show your I-9s are compliant:
Yes. All U.S. employers—regardless of size—must complete Form I-9 for every new employee.
Not usually. But if they’re misclassified or function like employees, you could be at risk.
You must designate an authorized representative to complete Section 2. Or, outsource it to i9 Intelligence for full-service support.
Section 1 must be completed on or before the employee’s start date. Section 2 must be completed within 3 business days of hire.
Yes. ICE audits employers of all sizes, and small businesses are often less prepared.
