HR teams know all too well that compliance is a constant and critical part of daily work. Ensuring accuracy is essential to avoiding both financial and reputational penalties and damage. In 2025, few documents make the case more compelling than Form I-9—a legally required task in every new hire packet since 1986, and a clear reminder of the importance of compliance. Whether you’ve completed hundreds of Form I-9s or are just getting started, you understand the importance of properly verifying a new employee’s identity and employment eligibility.
Today, HR teams are increasingly faced with a decision about whether to stick with the traditional paper I-9 form or move to electronic I-9 forms. While both formats are legally compliant when handled and completed correctly, the digital shift is gaining significant momentum, and for good reason.
Let’s explore why. Here are three key takeaways you’ll learn in this article:
- A refresher on the Form I-9’s role in the hiring process
- Benefits and considerations for both paper and electronic I-9s
- Best practices when switching from paper to electronic I-9s
Understanding Form I-9’s Role in the Hiring Process
As a reminder, the Form I-9 is a federal requirement used to verify an employee’s identity and authorization to work in the U.S. Every new employee that’s hired onto your company’s payroll (as a W-2 employee) must complete Section 1 on their first day and employers must complete Section 2 within three business days of the employee’s start date. No exceptions!
As with many compliance processes, this can be simple in theory but complex in practice. Compliance errors can lead to costly fines, drawn out audits, and serious penalties. That’s why effective management of Form I-9 is just as important as its accurate completion.
So, let’s look at the two formats and what sets them apart.
What Is a Paper I-9 Form?
The paper I-9 form is the original method of employment verification. It’s physically filled out on a hard copy form, signed with ink, and often filed in a cabinet somewhere in HR. Many smaller companies or those with more traditional workflows still prefer this paper route, as it’s simple and manageable for their business.
There’s a certain comfort in something tangible. However, paper I-9s come with a list of challenges that have become increasingly burdensome in today’s digital workplace.
What Are the Challenges of Paper I-9 Forms?
Like it or not, manual processes are often ripe for human error. Paper I-9s may seem straightforward, but they can lead to:
- Increased error rates due to manual entry or incorrect dates
- Incomplete or illegible forms, as not everyone has neat, legible handwriting
- Storage headaches, especially as your workforce grows
- Security concerns, like misplaced forms or unauthorized access
- Audit chaos, with HR digging through drawers or storage rooms when the pressure of an audit is on
- Lack of automated reporting, with a paper-based system, tracking document retention for terminated employees and monitoring reverification deadlines for individuals with time-limited employment authorization becomes difficult
Additionally, don’t forget about the added complexity of remote hires. Mailing forms, coordinating notaries or I-9 authorized representatives, and tracking completion timelines can become a full-time job in itself.
What Is an Electronic I-9 Form?
An electronic Form I-9 is exactly what it sounds like, a digital version of the same federal document that is completed by both the employee and employer and stored electronically. It must comply with Department of Homeland Security (DHS) and Immigration and Customs Enforcement (ICE) regulations, which include strict guidelines around data integrity, audit logs/trails, and access control.
The good news? When done right, electronic I-9s not only meet all legal requirements, but they often exceed the practical limitations of their paper counterparts. Let’s get into the pros of electronic forms.
The Benefits of Electronic I-9 Forms
Going digital can change the game. Here are a few advantages:
- Built-in Validation and Error Checking: Electronic systems flag missing fields or incorrect formats before submission, drastically reducing the risk of errors and subsequent penalties. This provides a much needed “check and balance” on human error.
- Seamless Remote Hiring: With electronic I-9s, remote hires can complete their portion from anywhere, and employers can easily designate and manage authorized representatives. The only caveat is that you must be enrolled in E-Verify in order to complete your Form I-9s remotely.
- Secure, Centralized Storage: No more cumbersome filing cabinets when it comes to I-9s. Digital systems store forms securely in the “cloud” with strict access controls, encryption, and automated retention tracking. Keep in mind that USCIS has specific retention and storage requirements. Digital storage makes gathering Form I-9s for an ICE audit easier than with their paper counterpart.
- Effortless Audit Trails: Every action on the form is timestamped, from signatures to edits, making compliance reviews and ICE audits far less stressful. Audit trails are usually required during an ICE/I-9 audit.
- Integration with HR Systems: Many solutions integrate directly with your HRIS or ATS, which makes for a smooth onboarding process and helps eliminate redundant data entry.
- Automated Reminders: Need to reverify an employees work authorization? Let the system remind you. No more sticky notes or calendar alerts. Most electronic systems have reminders and alerts built into the system.
In short, electronic I-9 forms help HR teams work smarter, not harder.
Legal Considerations
HR may still ask, “Are electronic I-9s really compliant?” The answer is an unequivocal yes, as long as the system follows DHS guidelines.
According to USCIS, employers can complete and store Form I-9 electronically, provided they:
- Use a secure system with audit trails
- Prevent unauthorized changes
- Provide access to authorized personnel only
- Produce legible and printable copies upon request
- Maintain proper data backups and storage protocols
The right vendor and technology partner will handle all of this for you, which will provide you with some peace of mind on every form.
Best Practices for Making the Switch from Paper to Digital Form I-9s
If you’re considering the move to electronic I-9s, here are a few key steps you’ll want to consider:
- Vet Vendors Carefully: This can’t be stressed enough. Look for platforms with deep expertise in Form I-9 compliance and DHS guidelines. Ask about how they’ll support you during an audit, security features, reporting capabilities, upgrade capabilities, remote verification workflows, and integration capabilities.
Keep in mind that some vendors need to pull the I-9s for you during an audit, so you need to be crystal clear on how that process works before you’re ever audited. Since companies typically only have about 3 days to respond to an I-9 audit, knowing how your I-9 vendor will support and partner with you during audits is a must and will help prevent unpleasant surprises and compliance challenges.
Check if the vendor offers expert support in addition to a software solution. Really consider if that is important to you. When ICE comes knocking and you can’t get a hold of anyone at your I-9 vendor, did you make the right choice?
- Remote-friendly workflow capabilities: If you're enrolled in E-Verify, make sure your vendor supports authorized representative management for remote employees. Some platforms will even help coordinate this for you.
- Train your team: Just because the system seems easier because it’s electronic doesn’t mean your team won’t need guidance. Be sure to train your staff, especially authorized users of the electronic I-9 system, so they understand all the details and requirements and feel confident using the digital tools. If you add new authorized users to the system, then be sure to train them prior to using the system. Ongoing refresher training is suggested as well. You may even want to consider a pilot program, where you have a small group or department use the system first for any of their new hires so you can identify any issues before rolling it out to the rest of the team.
- Plan your data migration: Moving from paper to digital requires careful planning. You certainly don’t want any forms or data lost in the process, as you’ll still need those forms in the event of an audit. Many vendors now offer services to digitize and securely store your existing paper I-9s.
How OutSolve Helps
Here’s where OutSolve comes in, as they offer a compliant, user-friendly electronic I-9 solution built with HR professionals in mind. Here’s what makes the OutSolve solution stand out:
- A centralized dashboard to track Form I-9s, E-Verify cases, and TNC escalation (Tentative Nonconfirmation)
- Streamlined remote verification processes, including support for acceptable documentation and representative designation
- Built-in audit readiness, with digital logs and digital storage
- Integration with your existing HRIS or ATS systems
- A dedicated team of experts to guide your transition and provide ongoing support
Whether you’re digitizing for the first time or upgrading from an outdated system, OutSolve helps you stay compliant, efficient, and stress-free.
What Paper vs. Electronic I-9s Means for your Organization
We all know that change can be daunting. When it comes to something as critical as Form I-9s, sticking with paper could cost you more in time, stress, and risk than you realize.
Overall, going digital with electronic I-9 forms means fewer errors, smoother audits, and a more efficient and user-friendly experience for both HR and new hires.
If you're ready to explore options when it comes to your I-9 process, let’s talk. Schedule a demo with OutSolve today Whether you’re a small business or a large corporation, we’ll help with your I-9 process and can even recommend a transition plan if you decide to make the switch to electronic I-9s.