Introduction

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Every business that hires employees is required by law to complete and retain Form I-9, which verifies the identity and employment eligibility of new hires. But how long should you keep these forms on file? The answer depends on several factors, including the size of your business and the nature of your industry. In this article, we’ll provide guidance on how long to keep I-9 forms on file and the potential consequences of not doing so.

Understanding the I-9 Form

Form I-9 is a federal document used to verify the identity and employment eligibility of individuals hired to work in the United States. It’s divided into three sections:

1. Section 1: Completed by the employee, who must provide their name, address, date of birth, and Social Security number.

2. Section 2: Completed by the employer, who verifies the employee’s identity using original documents (e.g., passport, driver’s license).

3. Section 3: Completed if the employee is rehired within three years after their original hiring date.

How Long to Keep I-9 Forms

The retention period for I-9 forms varies depending on the number of employees your business has:

• Businesses with fewer than 100 employees: Keep I-9 forms for three years after the employee’s hire date or one year after the employee’s termination, whichever is later.

• Businesses with 100 or more employees: Keep I-9 forms for three years after the employee’s hire date or one year after the employee’s termination, whichever is later. Additionally, keep I-9 forms for all current employees for three years after the business closes.

Consequences of Not Keeping I-9 Forms on File

Failing to keep I-9 forms on file or not retaining them for the required period can result in significant consequences:

• Fines: Businesses can face fines of up to $1,100 per missing or incomplete I-9 form.

• Criminal charges: Willful failure to maintain or retain I-9 forms can lead to criminal prosecution for false record-keeping.

• Back pay and benefits: In the event of an audit, employees may be eligible for back pay and benefits if their I-9 forms were not properly kept.

Best Practices for Retaining I-9 Forms

To ensure compliance and avoid potential penalties, businesses should follow these best practices when retaining I-9 forms:

• Establish a secure storage system: Keep I-9 forms in a locked cabinet or secure electronic system.

• Organize I-9 forms effectively: File I-9 forms by employee name, hire date, or termination date for easy retrieval.

• Regularly audit I-9 forms: Conduct periodic audits to verify the accuracy and completeness of I-9 forms.

• Consider electronic storage: Utilize electronic systems to store I-9 forms securely and streamline retrieval processes.

Conclusion

Properly retaining I-9 forms is crucial for businesses of all sizes. By adhering to the retention periods outlined above and implementing best practices, businesses can avoid potential penalties and protect themselves from legal liabilities. Remember, it’s not just about compliance but about protecting the rights and identities of your employees.

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How Long To Keep I9 Forms On File