What is an I-9? Documents, penalties, and best practices in 2026

If you’re part of the 44% of employers planning to expand their workforce in the near future, it’s a good idea to get your I-9s ready now. As an employer, you are required to complete Form I-9 for each employee you hire; no exceptions. The form is to verify that each employee is actually authorized to work in the US. 

Not filling out an I-9 could land you in serious trouble, so it's important to know what the laws are and how they affect your business. Below, we’ll define what an I-9 is, walk you through the steps to complete one, and offer some basic compliance tips.

What is an I-9?

The Employment Eligibility Verification form, also known as Form I-9, is a form that the US government requires for each employee. Form I-9 and its supporting documentation aim to prove two things: an employee’s identity and authorization to work in the US.

The I-9 includes two sections—one for the employee and one for the employer. Each new employee must complete and sign the first section by the end of their first day. Employers must complete and sign the second section by each new employee’s third day of work.

There’s also an optional form called Supplement B that employers must complete in special scenarios like rehires, name changes, or other re-verification cases.

Important 2026 updates: New forms and remote rules

There are a few new I-9 changes for 2026 that were announced in 2025. Among them are changes to the form itself, as well as new guidelines for remote verification.

Here are the key changes you need to be aware of as an employer:

• Updated expiration on electronic I-9s: If you are using an electronic system to complete your I-9s, check which version of the form you are using. The 08/01/23 edition was originally set to expire on 07/31/2026, but will now expire on 05/31/2027 and must be updated on the electronic system.
• Terminology changes: The newest version of the I-9 form, as well as the E-Verify system, now uses the term “sex” instead of “gender” and replaced “A noncitizen authorized to work” with "An alien authorized to work".
• E-Verify Status Change Report: In 2025, the Employment Authorization Document (EAD) number was added to the report. If the EAD on the report matches the EAD of your employee, you’ll now need to reverify the employee’s employment authorization.

In addition to the 2026 changes, back in 2023, US Immigration and Customs Enforcement (ICE) made remote document inspection a permanent option, ending the temporary COVID-era remote verifications. To qualify for the new remote examination option, you must participate in the E-Verify program and have your account in good standing.

How to fill out an I-9 form step by step

Form I-9 is straightforward and includes two sections. Employees fill out Section 1, and employers fill out Section 2. In unique circumstances, employers also use the Supplement B form.

Section 1: Employee section

Section 1 is for employee information and attestation. In Section 1, employees provide basic information about their identity, including their:

• Name
• Address
• Date of Birth
• Social Security number
• Email address (optional)
• Telephone number (optional)
• Citizenship status

Citizenship status often causes the most confusion in Section 1 of the I-9. The form asks employees to check one of four citizenship options. They must attest, under penalty of perjury, that they are:

1. A citizen of the United States: This includes those born in the US, including Puerto Rico, Guam, and the Virgin Islands, or those legally naturalized into the country.

2. A noncitizen national of the United States: Employees born in American Samoa, some former citizens of the Trust Territory of the Pacific Islands, and some children of noncitizen nationals born abroad are in this category.

3. A lawful permanent resident: This includes noncitizens who permanently and legally live in the United States. Lawful permanent residents usually have visas that document their status. When filling out the I-9, these employees must include their seven- to nine-digit Alien Registration Number or USCIS Number.

4. An alien authorized to work: Asylees, refugees, those with a Temporary Protected Status, and other unique circumstances fall under this category. Those who select this option must indicate in the space provided when their employment authorization expires. If the employee’s employment authorization documentation does not include an expiration date, the employee should enter “N/A” in the space.

Aliens authorized to work should include one of three document numbers to support their selection: Their Alien Registration Number/USCIS Number, Form I-94 Admission Number, or Foreign Passport Number, including the country of issuance.

Once the employee completes Section 1, they can sign and date the I-9. Make sure new hires complete this section during employee onboarding by the end of their first day of work.

The I-9 is available in English and Spanish. If needed, a translator, family member, or friend can help them prepare Section 1. In this case, also fill out Supplement A, which declares the use of a translator or preparer.

Section 2: Employer review

Section 2 is for employer review and verification. Employers must complete Section 2 by the third business day after an employee begins work.

Supplement B (formerly Section 3): Reverification and rehires

Section 2 includes three subsections:

Subsection 1, Identification: In the first subsection, employers copy the employee’s name and citizenship or immigration status from Section 1.

Subsection 2, Proof of Identity: Employers review employee documents that provide proof of identity and authorization to work. For a list of acceptable documents, check the IRS website. Remember that employers cannot accept photocopies of documents. Only the original copies comply with Section 2 rules.

However, remote examination of the documents is permitted under the alternative procedure.

Subsection 3, Certification of Work Eligibility: An authorized representative of your business must provide their name, title, signature, and business contact information. The representative must also examine the provided documents and verify that they’re “genuine and relate to the employee named.” Finally, the representative must confirm that the employee is authorized to work in the US to their knowledge.

The certification subsection can be a little daunting. But you don’t have to be an immigration law expert or attorney to comply with this section. If you make a good-faith effort to complete this section and honestly review the documents provided, you meet the certification requirements.

Supplement B (formerly known as Section 3) is for re-verification and rehires. You are not required to fill out this section for most new hires. You may complete Section 3 under the following circumstances:

• When an employee’s employment authorization expires.
• When you rehire a terminated employee whose original employment authorization documents have expired.
• When an employee’s name changes.
• When an employee’s EAD has been revoked

When reviewing Supplement B documents, you should evaluate them with the same good-faith standard you used to review Section 2.

Navigating the lists of acceptable I-9 documents

Employees have options regarding the types of identifying documents they can provide to prove their identity and authorization to work in the US. The I-9 verification process breaks these documents down into three categories: List A, B, and C.

List A documents - prove identity and work eligibility

• US passport or passport card
• Permanent Resident Card or Alien Registration Receipt Card
• Employment authorization document (EAD) with photo
• Certain foreign passports plus the appropriate form

List B documents - identity only

• Driver’s licence or state-issued ID card
• School ID card with photo
• Voter registration card
• Native American tribal document
• Military or Military dependent card
• US Coast Guard Merchant Mariner Card
• Other government-issued photo ID cards
• For minors, school, medical, and daycare records are acceptable

List C documents - eligibility only

• Social Security Card
• Birth certificate
• US citizen or resident citizen ID card
• Employment authorization document
• Native American tribal document
• Certification of report of birth issued by the Department of State

On a temporary basis, receipts for lost or damaged documents may be accepted in lieu of the document. However, once the 90-day period is up, the employee will need to present you with the replacement document.

I-9 vs. W-9 vs. W-2: What’s the difference?

As an employer, you need to collect and complete many forms for your employees. And it can be all too easy to confuse the I-9 with other forms.

Here’s a quick summary of the differences between three principal employment forms, I-9 vs. W-9 vs. W-2:

The I-9 is strictly for verifying work eligibility and is usually completed only once, at the time of hire. In contrast, a W-9 collects tax information and is for independent contractors only. It’s similar to the I-9 in that it typically only needs to be completed once.

At the end of the tax year, all employees for whom you collected I-9s will need to be issued W-2s so they can prepare their tax returns. As an employer, it is your responsibility to fill these out using the updated W-2 rules and submit them on time to the Social Security Administration, along with a copy to your employees.

Form I-9 compliance best practices

As a small business owner, complying with immigration laws can help you avoid many legal and financial headaches. A Texas company learned this the hard way when it was forced to pay $3 million to the US Treasury, with the business owners facing up to five years in prison.

Some tips to help your company maintain compliance:

• Use the E-Verify system: This free service lets you enter in the information from an employee’s I-9 to confirm their authorization to work. The system also allows you to remotely verify documents.
• Hold onto completed I-9s: Federal regulations require holding on to completed I-9 forms for at least three years after hire, plus 1 year after employment ends. So, if you had an employee work for you for five years, you would need to keep their I-9 for six years.
• Date and initial form corrections: If you find errors, you’ll need to cross out the mistake, enter in the correct info, and initial and date the correction. Or you can attach a new form and an explanation of the changes. Never erase info or use whiteout.
• Routinely check the Status Change Report: The E-Verify system sends out a bi-weekly report of EADs that have been revoked. If you find an employee’s EAD on the list, you’ll need to go through the reverification process immediately.
• 72-hour rule for I-9 completion: Upon hiring, you have three business days to complete an I-9 for the employee.
• 72-hour rule for furnishing I-9s: If you receive a Notice of Inspection (NOI) from ICE, you have three business days to furnish completed I-9s for all your employees.

Ensuring that you are completing I-9s accurately and storing them correctly is crucial, but it can also be time-consuming and stressful. But with QuickBooks Payroll, you’ll get a secure digital home for I-9 documents, separating them from personnel files and helping to minimize your audit exposure.

Common Form I-9 mistakes and how to prevent them

Accurately completing I-9 forms is essential to avoid penalties and maintain compliance. However, even with the best intentions, common mistakes can occur.

Help your business stay on the right side of the law by understanding these common errors and preventative measures:

• Missing signatures: Both the employee and employer must sign the I-9 form. A thorough review before filing any I-9 can ensure all required signatures are present.
• Incorrect citizenship/immigration status: Employees may select the wrong option or misunderstand the categories. Providing clear instructions and examples during onboarding, and allowing employees to ask clarifying questions, can help prevent this.
• Accepting expired documents: Employers must verify that the documents presented are valid and unexpired. Training staff to recognize valid documents and their expiration dates is crucial. Using tickler systems or software to track document expiration can also be beneficial.
• Incorrect document numbers: Employees might accidentally switch numbers around or enter incorrect information. To minimize errors, it's helpful to have employees review and double-check their entries before submitting the forms.
• Failure to update I-9s: When an employee's work authorization expires, employers must reverify their eligibility. Implement a system to track work authorization expiration dates and automatically trigger reverification procedures.
• Improper storage of I-9s: I-9s must be stored securely, separate from employee personnel files. Establishing clear guidelines for I-9 storage, including physical and electronic security measures, is vital.

Understanding these common pitfalls and implementing the suggested preventative measures will help businesses significantly reduce the risk of I-9 errors and ensure compliance with federal regulations.

Hiring the right people for your small business

The two most important things in any business are the customers and the employees. By hiring the right people, you can get the job done well and efficiently. And the automation and payroll features of QuickBooks can help you with your employment processes.