What are the rules for using electronic signatures and retention of Form I-9?

On June 15, 2006, the Department of Homeland Security issued a rule relating to electronic signature and storage of Form I-9 (71 FR 34510, amending 8 CFR Part 274a.). Rather than establishing specific requirements, DHS adopted product neutral standards that closely follow the electronic storage standards and requirements set out in previously-published Internal Revenue Service Rulings. As long as the electronic records system remains IRS-compliant, the system will be ICE-compliant. DHS noted that, as far as it could determine, off the shelf computer programs and commercial automated data processing systems in use comply with the rule’s standards and that it is not aware of systems that would not immediately be usable under the rule. DHS is seeking comments identifying any existing systems for electronic recordkeeping that do not comply with its standards

Businesses can adopt one or more of a number of different electronic recordkeeping, attestation, and retention systems that are compliant with the existing IRS standards.

• A small business may wish to download and retain .pdf versions of the employment verification record from the USCIS website.

• Employers who utilize electronic data recordkeeping as part of their accounting and tax functions may expand those functions to include the employment verification process.

• Electronic signatures can be accomplished using various technologies including, but not limited to, electronic signature pads, Personal Identification Numbers (PIN), biometrics, and click to accept dialog boxes.

Additionally, employers can utilize a combination of paper and electronic methods for fulfilling the I-9 requirements.

• An employer can complete the paper Form I-9 and use a scanner to retain electronically.

• Conversely, an employer can choose to complete the Form I-9 electronically and retain the printed form.