Ultimate Guide To I-9 For Staffing Companies in 2025

[fs-toc-omit]Everything you need to know about employment eligibility verification when operating a staffing business

As a staffing company, employment compliance is a critical part of your operations. From payroll to taxes and beyond, keeping up with changing regulations, audits, and compliance challenges can feel overwhelming — especially when onboarding new employees. While some companies need to collect certifications or specific documents, every employer must gather certain information for tax purposes, and any company with employees is required to verify employment eligibility.

This guide is designed for leaders and compliance professionals at staffing companies. We’ll break down what employment eligibility verification is, the required government forms, common issues with data collection and verification, and how to stay compliant — ultimately helping you avoid violations and create a smoother experience for your employees and staff.

What Even Is an I-9?

The Form I-9 is the government form every U.S. employer must complete to verify a worker’s identity and employment eligibility. It’s been around since 1986 — right alongside fax machines and Top Gun.

It was created as part of the Immigration Reform and Control Act (IRCA) to prevent unauthorized employment in the U.S. In other words, it’s the federal government’s way of making sure you’re not hiring anyone who’s not allowed to work in the United States.

There are two main parts:

• Section 1 – Filled out by the employee on or before their first day of work. It collects personal information like name, social security number, and legal status.
• Section 2 – Completed by the employer or an authorized representative within three business days of the employee’s start date. It involves reviewing the original, identifying documents (like a passport or driver’s license + social security card) and attesting that they appear genuine and correct.

If you’re hiring W-2 employees, you are required to do this for every single employee — and keep the form on file for years. If you’re hiring 1099 independent contractors, you technically don’t need to… but we’ll talk about why many staffing companies still collect I-9-like information anyway.

Quick note: The Form I-9 isn’t about taxes (that’s the W-4) or contracts (that’s your offer letter). It’s about immigration compliance — and it’s enforced by the Department of Homeland Security. Read on to learn more about why you want to get it right.

Why I-9 Still Matters in 2025

It’s 2025. Your workforce might be fully remote, your onboarding flow is completely digitized, and your contractors are paid in real time. But the I-9? Still required. Still risky. Still a pain if you get it wrong.

This decades-old form remains one of the most overlooked compliance landmines in staffing — especially for companies moving fast.

Here’s why it still matters:

Compliance Risks 

I-9 non-compliance can lead to serious consequences. We’re talking:

• Fines of up to $2,701 per form for first-time violations
• Audits that can stretch for weeks
• Risk of debarment from federal contracts
• Even criminal charges in extreme cases

Operational Risks 

An I-9 isn’t just a compliance checkbox. It’s tied to:

• How fast you can get workers on assignment
• Whether your clients trust you to stay compliant
• Your ability to onboard at scale across states and roles

If a worker’s I-9 is late, incomplete, or rejected by E-Verify, you can’t legally place them. That can mean lost revenue, staffing delays, unhappy customers, and chaos for your ops team.

The Old Way of Doing I-9s (And Why It’s Broken)

It’s 2025. Your I-9 process should not involve stacks of paper, a clipboard, or the phrase “Can you come into the office?” 

The traditional way of handling I-9s wasn’t built for speed, scale, or a remote-first world. It was barely built for the ’90s.

Here’s how the old way usually goes:

In-person bottlenecks

The old process assumes your team and the employee are in the same place. That’s often not the case anymore — especially for staffing companies placing workers across the country, frequently on short notice.

Asking someone to show up at a physical office just to prove they’re real is a fast way to lose talent and delay placements.

Paper forms (that never quite get filled out right)

Employees handwrite Section 1. Someone in HR prints off Section 2. The authorized rep squints at a passport and signs a form. Then someone scans it. Or files it in a cabinet. Or loses it. Or forgets it entirely.

Every step is a chance for a missed signature, a wrong date, or an unreadable ID scan. And every mistake? A fine waiting to happen.

Zero visibility, zero consistency

With paper or outdated HR tools, there’s no centralized tracking. You don’t know:

• Which employees have completed their I-9
• Whether documents are correct
• If you’re ready for an audit

Your admin ends up chasing down forms. When it comes time to innovate, your product team has no idea what’s happening in the backend. Your finance department prays the fines don’t show up on their desks. Andbecause the old way isn’t digitized, crucial documents get lost in the shuffle or buried in storage, making audits a nightmare.

And when things go wrong? You scramble.

• A client needs proof of work eligibility. You dig through file cabinets and boxes.
• An audit is announced. You start sweating.
• A form is missing. Guess who’s liable? (Hint: it’s not the worker.)

The bottom line? The old I-9 process is slow, manual, error-prone, and totally unfit for modern staffing.

The New Way of Doing I-9s

It’s 2025. The “remote I-9” isn’t a workaround anymore — it’s a fully sanctioned, legally backed alternative to the in-person process. But pulling it off the right way takes more than a PDF and a video call.

Here’s what a remote-first, audit-ready I-9 workflow actually looks like in 2025:

Step 1: The employee completes Section 1, digitally

Ideally through a clean, mobile-friendly interface — no printing, no scanning, no physical forms floating around. They enter their info, upload the required documents, electronically sign, and submit it securely.

This part should be custom branded and simple. The smoother and more recognizable it is, the faster you move someone from “offer” to “onboarded.”

Step 2: The Authorized Representative completes Section 2, digitally

Once Section 1 is done, an Authorized Representative — a manager, a friend, a notary, or whoever the employer designates — receives a secure link to verify the worker’s documents.

They review the documents, confirm it matches the person, and fill out Section 2. This step is where most errors (and fines) happen, so a clear workflow here is critical.

Bonus points for workflows that don’t require a login or account — just a fast, secure, guided process.

Step 3: Everything gets stored electronically

Once the I-9 is complete, it must be retained for years — and accessible in case of an audit. That means:

• Clear timestamps
• Secure document storage
• Ability to reproduce the I-9 and supporting docs on demand

All of this ideally happens automatically. No file cabinets. No “I think that’s on someone’s desktop.”

Step 4: Submit to E-Verify (and respond to TNCs)

The most certain way to ensure you’re operating within compliance is to use the government's E-Verify system to get a positive validation that the employee is eligible to work.This requires your I-9 system to submit the form data directly to USCIS electronically.

If there’s an issue (a Tentative Nonconfirmation, or TNC), your team needs to:

• Pause the worker’s assignment
• Notify them of the issue
• Track resolution through DHS

You’re not required to terminate someone over a TNC, but you are required to give them the opportunity to fix it — and to document every step.

What E-Verify Actually Does (And Doesn’t Do)

A lot of people think E-Verify is the I-9 process. It’s not. It’s a companion system — and while it’s powerful, it doesn’t replace your I-9 responsibilities.

Let’s break it down.

When Is E-Verify Required?

• If you’re a federal contractor placing an employee for government work, it’s mandatory.
• Some states (like Arizona, Mississippi, and others) also require it for private employers.
• Many staffing companies opt in voluntarily to reduce risk and provide proof of due diligence.

What E-Verify Actually Does:

• Checks employment eligibility - It compares the information from the worker’s I-9 against records from the Social Security Administration (SSA) and Department of Homeland Security (DHS).
• Returns a status - Most of the time, it confirms the worker is authorized to work in the U.S. But sometimes it flags a Tentative Nonconfirmation (TNC) — which means something didn’t match.
• Keeps a federal record - Using E-Verify creates a digital confirmation that the employer attempted to verify eligibility through DHS. That’s a strong point in your favor during audits.

What E-Verify Doesn’t Do:

• Replace the I-9 - You still need to complete and retain Form I-9. That’s your primary legal requirement.
• Catch all problems - E-Verify can’t detect fake documents if they look real on paper. It only checks what’s in the databases.
• Make mistakes disappear - If your Section 2 is incomplete or you miss the three-day window, E-Verify won’t fix it.
• Automatically protect you from fines - Using E-Verify is great — but only if the rest of your I-9 process is tight. Otherwise, it’s like installing a security system while leaving your front door open.

In short: E-Verify is a powerful compliance tool — but it’s not a get-out-of-jail-free card. It works best when it’s part of a broader, automated, and consistent I-9 process.

The E-Verify+ Solution and Its Limitations

E-Verify+ is an enhanced version of the standard E-Verify system created by the federal government, designed to offer more streamlined and efficient employment eligibility verification. It builds on the basic E-Verify process by adding features like automated data input and enhanced integration capabilities.

While E-Verify+ offers improvements over traditional E-Verify, it’s still not a complete compliance solution. Here’s what you need to know:

What E-Verify+ Does Well:

Automated Data Input - E-Verify+ can pull data directly from integrated onboarding systems, reducing manual entry errors and speeding up the verification process.

Digital Record Keeping - Saves digital confirmations, making it easier to store and retrieve verification records.

Integrated Workflow (to an extent) - Works within some ATS and HRIS platforms, allowing for a somewhat more seamless experience compared to the basic E-Verify system.

Enhanced Reporting - Provides more detailed compliance reports, which can simplify audit preparation.

The Limitations of E-Verify+:

1. Fragmented Onboarding Experience:

E-Verify+ requires workers to complete their I-9 in a separate flow from the rest of their onboarding process.

Reality: Workers often have to use a different mobile app or web experience just for E-Verify+, breaking the continuity of the onboarding journey.

Risk: This can lead to confusion and incomplete submissions, especially for remote or less tech-savvy workers.

2. Disjointed Compliance Tracking

Employers must track E-Verify+ completions and TNC resolutions in a system that’s separate from the rest of their operational software.

Reality: Staffing companies often use multiple systems for payroll, HR, ATS, and onboarding — but E-Verify+ doesn’t naturally sync with most of them.

Risk: Manually tracking TNCs or completions across multiple platforms increases the risk of errors and compliance gaps.

3. Account Creation Requirement for Workers

Workers are required to create an E-Verify+ account to complete their verification.

Reality: This extra step can cause friction during onboarding, as workers may struggle with account setup or forget credentials.

Risk: If workers fail to create or access their accounts, it delays the entire onboarding process.

4. Separated Section 2 Completion:

Even though E-Verify+ is a more modern solution, it still requires Section 2 to be completed in a separate, in-person flow from Section 1.

Reality: This means workers must complete Section 1 on their own, and then coordinate with an Authorized Representative to complete Section 2, often causing delays and inconsistencies.

Risk: The lack of a unified, streamlined flow makes it harder to ensure all steps are completed on time.

The Current Administration’s Stance:

The current administration has signaled its intent to increase enforcement of I-9 compliance and make E-Verify more broadly adopted. This means that even companies not currently mandated to use E-Verify may face increased pressure to adopt it as a best practice. 

Choosing the Right Documents for I-9 Compliance

One of the most common — and costly — mistakes employers make with I-9s is accepting the wrong documents. The form itself doesn’t make it easy, with three distinct lists (A, B, and C) and specific requirements based on the worker’s status.

• List A: Documents that establish both identity and employment authorization (e.g., U.S. Passport, Permanent Resident Card).
• List B: Documents that establish identity only (e.g., Driver’s License, School ID with a photo).
• List C: Documents that establish employment authorization only (e.g., Social Security Card, Birth Certificate).

The employer must either:

• Collect one document from List A, or

• Collect one document from List B and one document from List C.

Common mistake: Mixing and matching from the wrong lists — like using two List B documents — invalidates the form.

The Risk of Using the Wrong Documents

Using the wrong documents is more than just a minor paperwork issue. It can result in:

• Compliance violations during an audit
• Fines up to $2,701 per worker for first-time offenses
• Delays in hiring if the form needs to be redone
• Potential debarment from federal contracts

If your I-9 process doesn’t clearly guide workers on which documents to use — or if your team isn’t diligent about checking — you’re leaving compliance up to chance.

How Digital Onboarding with IDV Helps

Modern I-9 solutions that include Identity Verification (IDV) make document collection easier and more accurate:

• Guided document upload: Workers are prompted to upload the right combination of documents based on their work status.
• IDV checks: Uses photo-matching technology to ensure the ID presented actually belongs to the worker.
• Automatic validation: Alerts if the document uploaded doesn’t match the requirements (like a non-photo ID in List B).
• Clear instructions: Built-in prompts to help workers understand what’s needed without HR manually guiding them.

By incorporating IDV into digital onboarding, employers significantly reduce the risk of accepting the wrong documents — and the potential fines that follow.

Scaling I-9 Compliance Across Your Organization 

If you’re hiring dozens or even hundreds of workers per week, you can’t afford to manually manage I-9 compliance. The more your operation grows, the more chances there are for something to slip through the cracks.

Here’s what it takes to keep I-9s compliant at scale:

Standardize Your I-9 Process

Secure your business by making I-9 an automated, effortless, part of your onboarding process. 

• Implement a centralized, digital I-9 process that’s consistent for every employee placed.
• Use role-based permissions to ensure the right people can access the right information.
• Set up automated notifications for incomplete or overdue I-9s.

Tip: Centralizing doesn’t mean losing flexibility. Your process should adapt to local requirements without sacrificing consistency.

 Track Compliance in Real Time

When you’re managing hundreds of workers, it’s crucial to know:

• Who’s completed their I-9
• Who still needs to fill out Section 1 or 2
• Any outstanding TNCs that need resolution

Having a real-time dashboard with visual indicators can make a huge difference. It lets your team prioritize what needs attention now — before it becomes a problem.

Tip: Use a solution that makes it easy to manage and act on tasks, instead of just giving you visibility into the status of your processes.

Integrate Your Systems

If your I-9 workflow lives in a silo, you’re setting yourself up for data duplication and human error. Instead, integrate I-9 compliance into your existing tech stack:

• Onboarding Integration: Prompt an I-9 completion automatically during the onboarding process.
• HRIS Integration: Automatically update worker profiles and track compliance status.
• E-Verify Integration: Submit and track verifications directly without leaving the system.

Why it matters: The more systems your I-9 process touches, the higher the risk of missed steps and manual errors.

Automate Recordkeeping & Retention

You’re required to store I-9s for at least three years after hire or one year after termination — whichever is later. Manually tracking those dates is an invitation to make a mistake.

• Automate record retention and purge dates to maintain compliance.
• Keep documents securely stored and easily accessible for audits.

Train Your Team Continuously

Laws change. Staffing priorities shift. And with high turnover, your I-9 expertise might walk out the door at any time.

• Implement regular training and updates for HR, payroll, and compliance teams.
• Make training materials easily accessible, like short video tutorials or quick-reference guides.

What to Look for in a Modern I-9 Solution

When your staffing operation scales, so do your compliance risks. The old way of managing I-9s — paper forms, manual checks, siloed systems — just doesn’t cut it anymore.

The right I-9 solution should do more than just digitize forms. It should help you onboard faster, keep your data secure, and make compliance part of your routine — not a reactive scramble.

Here’s what to look for:

Remote-Ready and Mobile-First

Your workers aren’t tied to a desk, and your onboarding shouldn’t be either. A modern I-9 solution should be fully functional on smartphones and tablets, allowing both workers and authorized representatives to complete their parts on the go.

Seamless Integration with Your Tech Stack

I-9s don’t exist in a vacuum. They touch your payroll system, HRIS, and more. Your solution should integrate seamlessly to avoid duplicate data entry and missed updates.

Must-have integrations:

• Payroll and HRIS for worker profile updates
• E-Verify for automatic status submission

Why it matters: Integrations reduce manual work, minimize errors, and give you a complete view of compliance from day one.

Automated E-Verify Submission and Tracking

A built-in E-Verify integration that submits directly to USCIS and tracks the response is a game changer. No manual re-entry, no forgotten submissions, and no missed TNC resolutions.

Why it matters: E-Verify can feel like a separate process entirely — but it shouldn’t. An automated flow saves time and keeps you compliant.

Built into the Onboarding Workflow

A modern I-9 solution should be seamlessly integrated into your onboarding process — not treated as a separate, standalone task. This means:

• Triggering the I-9 as soon as the hire is confirmed
• Embedding the process within a single onboarding flow
• Automatically updating records and documents as the worker progresses through the onboarding steps

Why it matters: When I-9 completion is just another part of the onboarding checklist, it doesn’t get missed or delayed — and your workers aren’t stuck bouncing between tools.

Branded, Professional Worker Experience

Your onboarding flow should be branded with your company’s look and feel, maintaining a consistent experience for new hires.

Why it matters: A smooth, professional onboarding experience boosts confidence and reduces drop-off rates, especially for remote workers.

Secure Electronic Recordkeeping

Retention requirements mean you’ll need to keep I-9s on file for years. Look for solutions that:

• Automatically store and encrypt documents
• Include timestamped audit trails
• Have built-in retention and deletion protocols

Why it matters: An auditor isn’t going to care about your filing challenges — they’ll just expect the documents, fast.

Flexible and Customizable Workflows

No two staffing companies operate exactly alike. Your I-9 solution should adapt to your unique needs — whether that’s a multi-location setup, different authorized reps, or specific client compliance requirements.

Why it matters: One-size-fits-all workflows are a liability when your staffing model is unique. Flexibility is key to keeping your process both efficient and compliant.

API Access for Custom Integrations

Your tech stack might not look like everyone else’s. A modern I-9 solution should offer API access to connect with your custom systems or workflows.

Why it matters: API flexibility means your team doesn’t have to reinvent the wheel to maintain compliance as your processes evolve.

Multi-Jurisdiction Coverage

If your workers are spread across multiple states, you need a solution that can handle location-specific compliance nuances. Some states require I-9 for all W-2 employees. Others have more specific requirements. You need a solution that can automate when an employee should have the I-9 flow in their onboarding process.

Why it matters: I-9 compliance rules can vary, and your solution should adapt without extra manual work.

How Zeal Makes I-9s Easier 

By now, you’ve probably realized that managing I-9s at scale is a balancing act. You need to keep things fast and efficient while staying legally compliant — not an easy combo.

That’s why modern staffing companies are turning to solutions designed specifically to handle the complexities of I-9 compliance. And yes, Zeal has built a solution that checks all the boxes.

Here’s how it works, step by step:

 Part 1: Employee Fills Out I-9

• The worker receives the I-9 information as part of their digital onboarding flow.
  
  • If you're onboarding outside of a Zeal provided experience, the worker receives a mobile-friendly link to complete their part.
• The branded, simple interface makes it easy for them to enter info, sign digitally, and submit.
• The system flags any missing or incorrect data before submission, reducing errors upfront.

Why it matters: Fast, clean onboarding means workers can get to their assignments quicker, with less back-and-forth.

Part 2: Authorized Representative Completes Section 2

• At the end of Section 1 the employee invites the Authorized Representative to complete their part.
• The Authorized Representative gets an automatic text or email with a secure link.
• They review the worker’s documents, complete Section 2, and sign — all through a guided, digital process.
• The system enables remote verification supported by ID verification technology, ensuring the worker’s identity matches the documents presented.

Part 3: Zeal Stores IDs, Documents, and Timestamps for Record Keeping

• All documents and signatures are stored electronically in a secure, encrypted format.
• Zeal automatically timestamps every action and generates an audit trail, meeting federal recordkeeping requirements.
• The I-9 data is automatically submitted to E-Verify, with status updates logged directly in the system.

Part 4: Handling TNCs (Tentative Nonconfirmations)

• If E-Verify returns a TNC, Zeal notifies you immediately.
• The system guides you through notifying the worker and pausing any active assignments.
• Workers can resolve their TNC directly with DHS, while Zeal tracks the progress and resolution.
• Once cleared, the worker can be assigned without further delay.

 Key Differentiators: Why Zeal Stands Out

• USCIS E-Verify integration: Automated submission and tracking within the I-9 workflow.
• Unified onboarding: A single flow that is seamless for employees to complete.
• Remote authorized representative: Our innovative remote authorized representative flow makes it effortless for your team to complete I-9s.
• Mobile-first: Works seamlessly on smartphones and tablets.
• Custom branded: The entire process feels professional and on-brand.
• Electronic storage: Compliant with federal retention requirements.
• API access: Integrates with your ATS, payroll, CRM, accounting, registration, timekeeping, and more.
• Workflow integrations: Syncs seamlessly with your HRIS, worker’s comp, and other critical tools.

Making I-9 Compliance Work for You 

Staying compliant with I-9 regulations isn’t just a legal requirement — it’s a crucial part of running a modern staffing business. With the current administration increasing enforcement and the complexities of remote work, it’s more important than ever to have a streamlined, reliable process.

The old way of handling I-9s — with paper forms, manual data entry, and disconnected systems — no longer cuts it. And while tools like E-Verify+ offer improvements, they still leave gaps when it comes to creating a truly seamless and compliant onboarding experience.

By investing in a modern, integrated I-9 solution, you can:

• Reduce errors and compliance risks
• Automate tedious manual processes
• Create a more consistent, branded experience for new hires
• Stay audit-ready without the stress

Whether you’re onboarding dozens or thousands of workers, I-9 compliance doesn’t have to be a burden. Choosing the right technology can make the difference between a cumbersome, error-prone process and one that works smoothly at scale.

Ready to modernize your I-9 process and take compliance to the next level? Let’s make I-9 compliance work for you — not against you.