Automating I-9 Processes

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Nov 30, 2013 (3 years and 11 months ago)

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Automating I
-
9 Processes

Best Practices for Ensuring Compliance


Gordon W. Middleton, J.D.

Legal
Compliance,TALX

Employer Services



Gordon Middleton
-

Bio


7 years in HR/Payroll Legal Compliance


3 years Corporate Counsel Consultant


Frequent Contributor to industry publications


Frequent presenter at industry conferences and webcasts


American Payroll Association (APA)


Association of Corporate Counsel



About TALX


Leader in human resource, tax, and payroll services


Serve over 9,000 clients, including three
-
fourths of Fortune 500


TALX is an E
-
Verify Employer Agent


Agenda


Reasons to go electronic


Overview of the electronic I
-
9 process


Summary of the benefits


Best practices for employers


Questions & answers


What’s Motivating Employers to Go
Electronic?


Legal authority for electronic processes


E
-
Verify legislation


ICE audits


Legal departments concerned about compliance


Risk damage to brand


Potential for huge fines and/or criminal charges


Green initiatives


Organizational
-
wide efforts to eliminate paper processes


Easier to incorporate changes and control processes


Electronic I
-
9 Laws/Regulation


Public Law 108
-
390 (H.R. 4306)


Electronic signatures and storage permitted for Form I
-
9


Oct 30, 2004


President signs law


Apr 29, 2005


Law becomes effective


Interim Rule Effective 6/15/2006


Final Rule Effective 8/23/2010


Key Provisions


“Product Neutral”


Minimum performance standards


No specific technology requirements


Electronic I
-
9 Rule


Electronic System


Reasonable controls


Ensure system integrity, accuracy and reliability


Prevent unauthorized creation, alteration, deletion, or
deterioration of an electronic Form I

9


Search for Form I
-
9 (indexing system)


Reproduce legible and readable hardcopies


Audit trail when Form I
-
9 created, completed, updated, modified,
altered, or corrected


Date, identity of individual, particular action taken


Electronic I
-
9 Rule


Electronic Signatures


No one method identified for acceptable electronic
signatures


Specifying technologies was too inflexible


Sets acceptable standards


Electronic signature pads


Biometrics


Personal Identification Numbers (PIN)


“Click to Accept” dialog boxes


Affix at time of transaction


Create a record verifying the identity of the signatory


Must acknowledge they have read the perjury statement


Preparer/Translator Signatures Not Covered


E
-
Verify State Laws



E
-
Verify required for all employers

E
-
Verify provides a shield from liability

Verification required, penalties included,
E
-
Verify not specified

E
-
Verify required for public employers
and/or vendors (includes executive
orders)

E
-
Verify State Laws


All new hires


AL


All employers use E
-
Verify beginning April 1, 2012


AZ


All employers use E
-
Verify


GA


ALL employers must use E
-
Verify. The requirements are phased in starting July 1, 2012


LA


all employers must use E
-
Verify OR employ only workers with birth certificate or certain other forms of documentation


MS


All employers use E
-
Verify


NC


All employers use E
-
Verify; requirements phased in starting Oct. 1, 2012


SC


All employers must use E
-
Verify beginning Jan. 1, 2012


TN


all employers must use E
-
Verify OR employ only workers with valid TN driver’s license or certain other forms of
documentation


UT


ALL employers must use E
-
Verify


Employers with state service contracts


AR, CO, FL (executive order), ID (executive order), IN, LA, MN, MO(executive order), NE, OK, VA(late in 2012), PA(just
passed)


Implied usage


NV


not specifically mentioned, but penalties for illegal workers; WV

Similar to NV


I
-
9 Update


Current Form I
-
9 Expires 8/31/2012


DHS published new proposed Form I
-
9


Two page Form I
-
9, Nine total pages


Clearer instructions, more room


Employee e
-
mail and phone (optional)


Additional data fields for aliens, preparer/translator, and employer


Space for a third List A document


Proposed I
-
9 Changes

Instructions,
E
-
mail and Phone


Clearer instructions






More room





E
-
mail and
phone








Alien fields

Proposed I
-
9 Changes

Expanded List
A Section


Employee Name







3 List A Docs









Separate Fields











Proposed I
-
9 Changes

Separate
Name Fields for Employee





Employee
Completes Section
1 of Form I
-
9 Online




Directed to Web for
I
-
9

completion



Fields validated
for:



completion



data accuracy



e
-
Signature captured



Employees can complete at home

before Day 1 or at hiring location



Process rules eliminate errors



Form I
-
9s at every location

always up
-
to
-
date with USCIS

Benefits

HRIS

Payroll

Elements







Completed online with

employee



ID options limited based

on
info in Section 1



e
-
Signature captured



Increased compliance with

requirements



Eliminates guess work for hiring

managers



Consistent process across all

hiring locations

Benefits

HRIS

Payroll

Elements

Employer

Completes Section 2 Online





E
-
Verify System Integration




Fully integrated with

E
-
Verify Web Services



Data automatically sent

with completion of Form I
-
9




Eliminates data entry errors and

time spent transferring data to

E
-
Verify



No E
-
Verify training or

registration required for employer

Benefits

HR
IS

Pay
roll

Elements





HR Administrators Track Progress and Completion




Robust reporting and tracking



Remote internal auditing

capabilities



No mailing forms

between locations




Provides high visibility to entire

process



No need to travel to hiring

locations to audit process



Decreases costs, delays and data

security risks

Benefits

HRIS

Payroll

Elements

HRIS

Payroll

I
-
9 Storage






I
-
9s stored electronically



Purging occurs

automatically based on

hire/term dates



Payroll cycle data used

to
identify missing I
-
9s



Reduces security risk and storage

costs



Reduces risk by only retaining

required forms



Validates that I
-
9s are on file for

every current employee required



Automated compliance

reporting/scores

Benefits

HRIS

Payroll

Elements

HRIS

Payroll

Responding to an Audit






All data accessible from

online portal



Reports can be created

instantly with required data



Auditor can be granted
access

to system



No travel or shipping required for

auditing


All required data is available

on
-
demand

Benefits

HRIS

Payroll

Elements





Compliance


Monitor compliance at each
location and overall


Compares I
-
9 and payroll data
to maintain full compliance





Consistency


Process consistency across

hiring locations


Automation reduces errors

and encourages completion





Visibility


HR and Compliance
administrators real
-
time view

of process


Auditing can be managed
remotely





Workflow


Simplified process for new
employees and hiring managers


E
-
Verify process completely
integrated





Going Green


Eliminating unnecessary
paper process supports
organizational “green”
initiatives



Best Practices for Employers


Complete electronic I
-
9s for all new hires


Consistent process and training


Convert existing paper I
-
9s to electronic


Single repository


Electronic I
-
9 benefits


E
-
Verify all new hires


Verify employment eligibility


Same process for all


Use payroll data to reduce compliance risk


Continually validate that I
-
9s are on file for each employee
required


Purge old I
-
9 records for terminated employees once data
retention requirements are satisfied


Best Practices for Employers


Investigate IMAGE Program

(
I
CE
M
utual
A
greement between
G
ovt

and
E
mployers)


ICE will waive potential fines if substantive violations are
discovered on fewer than 50 percent of the required
Forms I
-
9


ICE will not conduct another Form I
-
9 inspection of the
company for a two
-
year period.


In instances where more than 50 percent of the Forms I
-
9
contain substantive violations, ICE will mitigate fines or
issue fines at the statutory minimum of $110 per
violation.


ICE will provide information and training before, during
and after inspection.


Best Practices for Employers


Documented Statement of Process

(IMAGE
requires)


I
-
9 completion


Re
-
verifications


Scenarios


Impact on I
-
9’s


Identity theft process


Name & SSN changes


Process owners


Training


Reporting and audit process


Best Practices for Employers


Conduct internal audits


Understand the DHS audit process


Use a 3
rd

party for review/audit


Document audit process and results


Pay attention to detail


Questions?

Contact Information:

Gmiddleton@talx.com


Resources:

www.uscis.gov/I
-
9central

M
-
274 (Handbook for Employers)