In an article for Small Business Trends, Ed Lieber recently listed important factors to remember when instituting payroll. The right system for every company has to be specific, efficient and compliant with federal standards, and this includes processing the correct filings for every employee. One of the important filing forms mentioned is the I-9, which pertains to Employment Eligibility Verification.
As the source says, this filing doesn't just record whether or not employees are legally allowed to work in the United States, but also more general information about their identity that can be used to confirm who they are. The official stated purpose of this document on the form itself is to both verify the identity and authorize the employment of new employees.
There are certain cases where an I-9 doesn't apply, as the official website of the United States Citizen and Immigration Services website says. Self-employed individuals don't need to have one filed and recruitment firms usually don't have to file a form for the workers they place on behalf of clients. However, employees that only work for one day will still need one.
The FAQ on that organization's page goes into further detail about what constitutes a new hire for the purposes of the I-9.
"Form I-9 requirements are triggered by the hire of an individual for employment in the United States," it reads. "A 'hire' is the actual commencement of employment of an employee for wages or other remuneration. If any of the owners are 'employees' of the company, then each owner must complete Form I-9."
For small and medium-sized businesses, this information might not be readily apparent. When a new HR system implementation is successful, setting up a payroll system for filing relevant forms can encourage correct filing procedures.