Ep. 488 Four Steps to I-9 Compliance and Prepare for an Audit

Rancho Mesa’s Alyssa Burley and Client Technology Coordinator, Brenda Khalil, discuss how to prepare your business for an I-9 audit.

Show Notes: ⁠⁠⁠⁠Subscribe to Rancho Mesa's Newsletter⁠⁠⁠⁠

Host: ⁠⁠⁠⁠Alyssa Burley

Guest: ⁠⁠⁠⁠Brenda Khalil⁠⁠

Editor: Jadyn Brandt

Music: "Home" by JHS Pedals, “News Room News” by Spence

© Copyright 2025. Rancho Mesa Insurance Services, Inc. All rights reserved.

Transcript

Alyssa Burley: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive.

I’m your host, Alyssa Burley, and today I’m joined by Brenda Khalil, Client Technology Coordinator with Rancho Mesa, and we’re going to discuss how to prepare your business for an I-9 audit.

Brenda, welcome to the show.

Brenda Khalil: Hi Alyssa, happy to be here.

AB: Now, the Trump administration has placed a strong emphasis on immigration policy, which means U.S. employers could see significant changes to employment-based immigration and work authorization within the next few years.

Now, if a business is found to be in violation of I-9 requirements, an employer could face fines worth tens of thousands of dollars or even criminal charges. So Brenda, what do employers need to know about their I-9 compliance?

BK: Great question. So, all U.S. employers are required to complete and maintain Form I-9 for each employee as proof of work authorization status.

Businesses can be audited for I-9 compliance at any time. And if your business is selected for an audit, you will have three days to provide documentation to U.S. Immigration and Customs Enforcement inspectors, otherwise known as I.C.E., so it’s important to be prepared before an audit takes place.

AB: Okay. Will you walk us through the steps employers should take to prepare their business for a visit from ICE and an I-9 audit?

BK: Sure. So, first you’ll want to be sure that you have completed I-9 forms for all of your employees. And employees should provide employers with proper documentation and proof of work authorization, in order to complete Section 1 of Form I-9.  And, it’s then the employer’s responsibility to verify the validity of those documents and enter necessary information into their own records, in Section 2 and Supplement B of Form I-9.

AB: Right, and Rancho Mesa clients can access additional guidance for completing the Form I-9 in the RM365 HRAdvantage™ portal to ensure record-keeping compliance.

Now, what’s the next step in preparing for an I-9 audit?

BK:  Well, next, you’ll want to conduct an internal audit. And this can help catch any errors before a formal audit occurs. Depending on the size of your business, you may want to take a look at all employee I-9 records, or for really large companies, just audit a portion of them. But be sure to check for any errors or omissions in I-9 forms, and dispose of any expired I-9 forms as well.

AB: That’s good advice. And conducting your own internal audit can help prevent any surprise errors from showing up during an official audit. But, let’s say an employer does find some errors in their I-9 documentation, what should they do to correct the issue?

BK: Well, if they do find any errors through an internal audit, they should correct them right away.

To correct Form I-9 in accordance with U.S. Citizenship and Immigration Services guidelines, simply:

•             Draw a line through the incorrect information,

•             Enter the correct information,

•             then initial and date the correction.

Errors made in Section 1 will need to be corrected by the employee, while errors made in Section 2 or Subsection B will need to be corrected by the employer.

AB: Yeah, and many of our clients have been in business for decades, so how long do they need to keep their I-9 records?

BK: So I-9 forms must be kept in a safe and secure location by an employer for three years after the date of hire, or one year after the date employment ends, whichever is later. So, for instance, if you hire someone and they only work for your company for a year and move onto another company, you would keep their I-9 information for another two years after their last day of work. But, if you have someone who’s been with your company for 10 years prior to leaving, you would only need to keep their I-9 information for a year after their last day.

AB: Ok, that’s pretty straight forward. Following these guidelines and keeping your business in compliance is the easiest way to protect yourself from costly fines or—worst case scenario—criminal charges. And, taking a little bit of time to conduct an internal audit can have a large payoff in the long run.

Brenda, if clients have any questions about I-9 documentation or the audit process, what’s the best way to get information?

BK: If clients have specific questions about the law, they can submit them through the HR portal or call our HR Experts directly. And for questions about updating company policies, clients can contact me at bkhalil@ranchomesa.com or call me directly at (619) 486-6562.

AB: All right, well Brenda, thank you for joining me in StudioOne™.

BK: Thanks for having me.

AB: Thanks for tuning in to our latest episode produced by StudioOne™. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.