QUICK LINKS

Why UHY?
PEO Expertise
Locations

ARCHIVE

Missed an issue? New subscriber? Visit our

news archive.

I-9 AUDITS: HOW TO PROTECT YOUR COMPANY

The Immigration Customs and Enforcement division (ICE) continues to audit the I-9 forms of businesses across the nation. Civil penalties for errors on I-9s can range from $110 to $1,100 per violation. Penalties for first time violators who knowingly hire and continue to employ unauthorized workers range from $375 to $3,200 per violation. More than $12 million in fines were assessed in 2012 from just 3,000 such audits.

Here are some tips to help protect your business and limit exposure for I-9 violations:

Be sure that you are using the most up-to-date version of the I-9 form. Only the 3/8/13 version of the I-9 form should be used.
Complete the form in a timely manner. For a new hire, Section 1 of the form must be completed by the employee before they begin work. The employer must complete Section 2 and the Certification by the end of the third business day from the employee's start date. Be sure to date each section properly and do not leave any of the date fields blank.
If assistance was provided to the employee in completing Section 1, be sure to complete the Preparer/Translator Section.
Don't accept any expired documents.
Do not require the employee to provide specific documents or more documents than minimally required.
Keep the I-9 forms in a separate binder for current employees and another for terminated employees. Do not keep the I-9's in employee personnel files.
Conduct self-audits. Correctable errors on the I-9s should be fixed and any changes made should be dated with the words "self-audit" printed next to the change.
If ICE conducts an audit, insist on receiving a written Notice of Inspection and your right to have three business days to gather any required documents before turning them over.

For more information or questions on this topic, please contact a member of the firm's National PEO Practice in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040 or visit us on the web at www.uhy-us.com.

Published by UHY LLP News.

Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.