Ask an HR Pro: What Is an I-9 Audit?

In 2025, U.S. Immigration and Customs Enforcement (ICE) is recruiting heavily and continuing its heightened focus on workplace compliance, with increasing I-9 audits as part of its enforcement strategy.

For business owners and HR teams – specifically in high-risk industries like construction, retail, manufacturing, agriculture, and hospitality – understanding what an I-9 audit is and how to prepare for one has become more critical than ever.

But what exactly is an I-9 audit, and how can you ensure your business is ready if you receive that dreaded notice?

We asked Vickie Krolak, SPHR, SHRM-CP, Senior HR Business Partner at iHire, to break down everything you need to know about I-9 audits and how to prepare for them.

What Is an I-9 Form Used For?

Before diving into I-9 audits, let’s clarify what the I-9 form – officially called the Employment Eligibility Verification form – is and why it matters for your business.

“The I-9 form is a federal requirement that every employer must complete for each individual they hire,” Krolak explained. “This form serves as proof that you’ve verified your employee’s identity and their authorization to work in the United States.”

Federal law requires all U.S. employers to properly complete an I-9 for every employee, regardless of the size of your business or the number of people you employ.

The form must be completed by the employee on or before the employee’s first day; employers then have three days to complete the form. Additionally, using E-Verify is recommended and even required for certain employers like government contractors or those in specific states.

“Many small business owners don’t realize that I-9 violations can result in significant penalties, even if the errors are unintentional,” Krolak noted. “That’s why understanding the process and maintaining accurate records is so important.”

In fact, civil penalties for I-9 paperwork violations currently range from $288 to $2,861 each.

What Is an I-9 Audit?

An I-9 audit is a formal investigation conducted by ICE to ensure employers are complying with federal employment eligibility verification requirements. During an audit, ICE reviews your I-9 forms and supporting documentation to identify any violations or inconsistencies.

“An I-9 audit typically begins when ICE serves you with a Notice of Inspection, or a NOI, which gives you three business days to produce all requested I-9 forms and supporting documents,” Krolak said. “It’s a legal requirement, not just a request.”

The audit process involves several stages:

• Initial Notice: ICE delivers an NOI requesting your I-9 forms and related documents
• Document Review: ICE examines your forms for completeness, accuracy, and compliance
• Interview Phase: ICE may interview you and your employees about hiring practices
• Final Determination: ICE issues findings and any applicable penalties

Common violations ICE looks for include having incomplete forms (including missing start dates) and/or missing signatures, accepting incorrect documentation, and failing to reverify expired work authorization documents.

How to Prepare for an I-9 Audit

Preparation is your best defense against I-9 audit penalties. Here’s how Krolak recommends getting your business ready:

Conduct Internal Audits Regularly

“Don’t wait for ICE to tell you there’s a problem,” Krolak advised. “Conduct your own internal I-9 audits at least annually and use a thorough checklist to identify and correct issues before they become costly violations.”

Make sure you are using the correct version of the form and review it thoroughly, including for:

• Complete employee information in Section 1
• Proper employer verification in Section 2
• All required signatures and dates
• Acceptable documentation from the I-9’s List of Acceptable Documents

Organize Your Documentation

Keep all I-9 forms organized and securely stored, whether you’re using hard copies or digital files.

“If you receive an NOI, you’ll only have three business days to produce everything ICE requests,” Krolak cautioned. “Having a well-organized system can make all the difference between compliance and penalties.”

Store I-9 forms separately from personnel files and maintain them for the required retention periods: three years after the hire date or one year after employment termination, whichever is later.

Train Your HR Team & Establish Consistent Processes

“Ensure everyone involved in the hiring process understands I-9 requirements,” Krolak said. “Proper training helps prevent common errors like accepting expired documents or failing to complete reverification requirements.”

Create standardized procedures for I-9 completion and make sure all hiring managers follow them, too.

Consider Enlisting Professional Help

“If you’re unsure about I-9 compliance or discover significant issues during an internal audit, consider consulting with an employment attorney or HR professional,” Krolak suggested. “Professional guidance can help you address problems correctly and prepare for potential enforcement actions.”

Stay Compliant and Prepared

I-9 audits may seem overwhelming, but proper preparation can help protect your business from costly penalties and legal complications. By understanding what an I-9 audit involves and taking proactive steps to ensure compliance, you’ll be better positioned to handle any enforcement actions that come your way.

Remember, I-9 compliance isn’t just about avoiding penalties – it’s about maintaining a legal workforce and protecting your business’s reputation. Take the time to review your processes, train your team, and conduct regular internal audits to stay ahead of potential issues.

Interested in getting personalized guidance on I-9 compliance or other HR challenges? Schedule a free consultation with Krolak and our Outsourced HR Services team today!