New Form I-9 - Are You Notifying Your Clients?

[JohnH]

Interesting article - probably worth sending to all clients who have employees:

http://articles.baltimoresun.com/2013-05-06/business/bs-bz-employment-eligibility-20130506_1_employers-form-immigration-services

[BOB W]

According to INS only new employees are required to use the new form, as long as a properly completed old form is in the employer's possession.

http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=bc6e41f935a4d310VgnVCM100000082ca60aRCRD&vgnextchannel=55b2aca797e63110VgnVCM1000004718190aRCRD

[ChEAr$]

Warning!

According to INS only new employees are required to use the new form, as long as a properly completed old form is in the employer's possession.


http://www.uscis.gov/portal/site/usc...004718190aRCRD

Don't follow that link at your peril.

I did in order to send it to a client. My antimalware and anti virus scan was running. When it concluded, it alerted me
that the link was a SEVERE threat.

Practice safe computing always.

[BOB W]

Better check your computer, I had no problem with this gov't link.

[Nashville]

General Response

Guys, it's hard to get clients to get excited about this latest attempt to stop illegals from obtaining employment.

The original I-9 has been around at least 25 years, and many companies just stopped filling them out. There was no enforcement, and illegals still poured in. Then along came the Patriot Act - boy, that thing really stopped them didn't it? In fact, the banks instead welcomed illegals with open arms and gave them checking accounts with no FEIN whatsoever, while at the same time making legit citizens drag out every document since birth.

Now, someone expects me to strike terror in the hearts of my clients because of a yet another feeble administrative hoop such as a revised I-9?? Are you nuts?

Get real!

[JohnH]

Ron:
You're right up to a point.
It is silly bureaucracy.

But we can't escape the fact that INS does have the power and they are becoming more aggressive.
If the INS swoops down on a client and assesses penalties, the client will likely be upset with the accountant for not warning them.

You can do what you wish, but I'm warning my clients.
Chances are nothing will happen, but if it does they have only themselves to blame.

[Jiggers]

You didn't read the various news articles on visits by ICE (Immigration and Customs Enforecement)?

One employer, 35 employees, no illegal immigrants. Fined $13,300, errors on the I-9.

Another employer, 148 employees, 1 with suspected documents. Fined $40,000.

Another employer, 337 employees, no illegal immigrants. $50,000 fine, errors on the I-9.

Another employer, 13 employees, no illegal immigrants. $43,428 fine, errors on the I-9.

So it is important that the I-9 be completed, along with the W-4.

[Snaggletooth]

Point Well Taken

Jiggers, your customary wisdom is respected. I just don't think clients are going to follow this siren song again even if warned (which may be a good idea anyway).

Just out of curiosity, I wonder how many illegals have actually been deported as a result of this ballyhooed I-9 crackdown? I can believe the horror stories about American employers having to pay big fines, but seriously doubt that anything other than a token number of illegals have actually been deported.

Very much like the govt fining you $700 for not having medical insurance, but in no way willing to PROVIDE affordable insurance.

The whole thing just another revenue-raising set of fines and penalties, under the guise of solving some popular social issue.

[S T]

Regardless of what we think of the "bureaucarcy" I am thinking I agree with JohnH - if we are preparing payroll, and new hires etc - we at least have to keep our clients informed and follow the guidelines. We would be "negligent" and/or not practiced "due diligence" if we did not.

As I have an "Insurance License" as well, I have received multiple emails from the Carriers - some very informative - about the changes that either could take place or will be taking place - I am the clients Accountant/bookkeeper - so I also feel I have to keep them informed on those issues as well. Even if I am not the "Agent of Record" for writing their medical insurance.

Just a service - at least I have provided the most current information

Sandy

[taxea]

Depends on whether you are the payroll/bookkeeper or only the preparer. I am to the point where...if the client engages in business without proper/necessary knowledge/research of bookkeeping I won't take them on.

[Bees Knees]

Now, someone expects me to strike terror in the hearts of my clients because of a yet another feeble administrative hoop such as a revised I-9?? Are you nuts?

If you are preparing payroll tax returns for a client, you also need to inform clients about the new I-9. It is irrelevant whether or not your client gets a visit from the immigration service. No different than whether or not your client gets audited by IRS. We still advise clients on the rules.

Imagine one of your payroll clients gets a visit from ICE and gets a $40,000 fine for failure to have I-9s for their employees. Your client calls you and asks why you didn’t tell them about the I-9 requirement. You say something to the effect the government doesn’t enforce immigration laws, so you see no need to tell clients about their immigration obligations.

How long before your client comes to the conclusion that you are responsible for their $40,000 fine?

[JohnH]

Another nice thing about email - how it can be used for CYA situations like this.
And it's so efficient.

I emailed the article to my payroll clients, along with a pdf of the new I-9 instructions and a separate pdf of the I-9 only. I recommended that they read the article, study the rules, and print out the new I-9 for their use.

I agree that it's highly unlikely that any of them will ever get a visit from INS or a $40K fine.
But if they do, we won't be having the conversation Bees just described.
They'll have my sympathy and that's all.

[S T]

Thanks JohnH for your approach, this is the one that I am going to use,
copy of article, copy of I-9 and copy of instructions. - All via email with copy to file.

As long as I am offering the accounting/bookkeeping/payroll I feel it is only the correct thing to do to keep the Employers (our clients) informed and as a sidestep "CYA"

Sandy

[JohnH]

The form is embedded in the instructions, but they're lengthy. I just wanted to be sure they didn't miss it. So I made a separate 3-page pdf of just the form and the list of acceptable documents to accompany the larger file.

I honestly have no idea what I would say to a client if they were unlucky enough to get hit with an INS audit & penalties if I hadn't shared this info with them. When giving them the info, I even tell them my motivation is partly CYA, but I do care about what could happen to them if they were caught unprepared. You can lead a horse to water, but ....