by Jenna McCaffery | Director of Engagement & Innovation
I-9 compliance seems straightforward, until it’s not. Missing signatures, expired forms, or storing too much information (yes, that’s a thing) can result in hefty penalties during a U.S. Immigration and Customs Enforcement (ICE) audit.
Many companies assume their process is solid – until a merger, acquisition, or random ICE inspection reveals otherwise. Like most things in HR, prevention costs far less than cleanup.
That’s why FIT HR helps clients get ahead of the issue with internal I-9 audits and compliance training. We’re not here to point fingers. We’re here to fix what’s broken and put the right structure in place moving forward.
What Is an Internal I-9 Audit?
An internal I-9 audit is a proactive review of your organization’s Form I-9s and related processes to ensure compliance with federal regulations. These audits identify missing or incorrect information, outdated documentation, and improper storage practices before they become costly problems.
Common I-9 Compliance Errors We Uncover
- Incomplete or incorrectly filled-out I-9s
- Use of outdated Form I-9 versions (are you using the latest version from USCIS?)
- Failure to follow proper document retention rules
- Mixing of I-9 forms and documents in employee personnel files
- Missing section completions, especially for remote hires or rehires
The Real Cost of I-9 Mistakes
According to USCIS guidelines, fines range from $230 to $2,500 per form for substantive violations. Multiply that across a growing workforce and you’re looking at serious risk exposure, plus a compliance headache that no amount of aspirin will solve.
Even simple, fixable errors can raise red flags during an audit, especially if they appear across multiple employees. Consistency and structure aren’t just nice-to-haves. They’re your best defense.
Case Study: Behind-the-Scenes Compliance Win
A 90-person team came to us as part of M&A due diligence. Their leadership wanted assurance that compliance gaps wouldn’t jeopardize the deal or create costly surprises during the transition.
We conducted a full internal I-9 audit and uncovered more than 150 violations, ranging from missing verification dates to outdated documentation practices. In response, we implemented a new process, updated all active and terminated I-9 files, and trained the admin team on document collection and retention standards.
The result? They avoided a potential ICE audit, cut down administrative risk, and saved themselves a potential six-figure penalty. We didn’t wear capes, but we’ll call that a quiet save.
Why Proactive I-9 Audits Matter
If you’re wondering how to manage HR without an in-house team, or if your team is buried under onboarding checklists, I-9 compliance might not be top of mind. But it should be.
Internal I-9 audits are one of the most overlooked aspects of HR compliance solutions, yet also one of the easiest to improve with the right partner.
Audits aren’t about assigning blame; they’re about reducing your risk before it turns into a fine (or a legal mess). For fast-growing teams, multi-state employers, or anyone with turnover in admin or HR roles, a proactive audit is a smart, scalable move.
What a Strong I-9 Process Looks Like
- The most current version of Form I-9
- Completed sections 1, 2, and 3 with timely signatures
- Retention schedules based on termination or hire date
- Storage that separates I-9s from other personnel files
- Ongoing training for hiring managers or administrators
Need Help? FIT HR Can Support Your I-9 Compliance
Need help putting this in place? That’s exactly what we do.
At FIT HR, we specialize in affordable HR services and on-demand HR support that keeps your organization audit-ready and fully compliant, without slowing down your business operations.
Whether you have a small internal HR team or no HR team at all, we meet you where you are, then help you build processes that grow with you.
Proactive > Reactive. Always.
If your onboarding checklist doesn’t include regular I-9 reviews, let’s fix that.
Contact FIT HR today for a risk-free assessment and a clear, simple actionable roadmap to compliance.