Business Beat
Surviving the I-9 Audit By Bill Cook
Immigration has been a major issue for decades and it will be an even bigger one over the coming year. The previous spring push produced a 400% increase in audits. Penalties of $50, 000 plus were common. The next big push is scheduled to begin after the upcoming Covid-19 audits. Most companies we’ve talked to had no idea whether their I-9 program would pass an audit or not. After all, it is a government project with lots of paperwork. The smart move is to do your audit before they do. Here’s are the things we’ll look at: • What triggers an I-9 Audit? How are companies selected? • What are they looking for? • Correcting mistakes • The No-Match-Letter • A basic guide for the I-9 process What triggers an I-9 Audit? How are companies selected? Most NOIs (Notice of Inspection) are at random, but there are targets. • Larger, high profile companies (publicity sends a message) • Companies with many hourly paid employees. • In response to complaints from employees, ex-employees, clients and the public. What are they looking for? They want to examine your process and
look for errors. • Unsecured I-9s (not filed separately and secured) • Missing I-9s • Missing documents • Unacceptable documents • Expired documents • Documents with errors • Your requirement for, and adherence to E-verify (Are you required to E-verify and/or did you follow the procedures?)
The No-Match Letter The No-Match Letter comes from either the Social Security Administration (SSA) or The Department of Homeland Security (DHS). It will inform you that the name you provided does not match the SS# you provided. It will assume that you may have made a mistake and, if so, to correct it. Do Not Ignore This Letter! Your employee will have received a similar letter advising him to contact the SSA office.
Correcting Mistakes • Examine all I-9 forms: o Look for any employee without an I-9. o Expired documents o Any errors or missing information. • You may correct a mistake or prepare a new form as you choose. But, unless it’s for a new employee, keep both forms. Attach a short note explaining the action and date it. Never back-date. • Line-over any incorrect item. Then enter the correct information, attach a note and date it. Never back-date. • If you’re missing an I-9 form for an employee, immediately provide the employee with a new form 1-9. Allow the employee three (3) business days to complete and provide acceptable documents. Attach a note explaining the action. Use the current date. Do not back- date.
The rules on No-Match Letters have changed significantly. You may not terminate or otherwise adversely impact the employee as a result of this letter. Follow the directions in the letter which will advise you to visit the SSA website. These are the new rules: 1. Review your records that were used to send original information to them. • Look for misspelled names. • Look for missing first, last or middle names. • Missed information, blank spaces, (Note that blank spaces are now allowed on the new I-9 form where applicable. typographical errors, any instructions not followed etc. 2. If the employee has names that were not used on the original documents, add those names, explain and resubmit. You can do that by preparing a new W2 or whatever document was originally provided and mailing it to them. 3. After document correction or review processes are complete, explain everything to the employee. Do not terminate. Treat matter as merely procedural. • Advise the employee to go to the local Social Security (SS) office to straighten it out. If he/she does, SS may give him/her a letter saying they are reviewing it. • When the employee shows you that letter, just follow what it says. • If instead, the employee says he/she
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