How to Handle I-9 Verification Through Justworks PEO: A Practical Walkthrough

You just extended an offer, the candidate accepted, and now the clock is running. Under federal law, your new hire must complete Section 1 of the I-9 by their first day of employment, and you must finish Section 2 within three business days of their start date. Miss that window and you’re looking at a potential USCIS violation, regardless of whether the employee is actually authorized to work.

Now add a PEO into the picture. You’re using Justworks, which handles payroll, benefits, and a chunk of your HR administration. So who actually owns the I-9 process? The platform makes it look seamless, but “seamless” doesn’t mean the responsibility has shifted off your desk.

This is where a lot of small and mid-sized business owners get caught. They assume that because Justworks is the co-employer on paper, the compliance burden is shared equally, or even transferred. That’s not how I-9 liability works under the Immigration Reform and Control Act (IRCA). The entity that physically examines and certifies the documents in Section 2 bears primary responsibility for that verification, and in most Justworks arrangements, that entity is you.

This guide walks through each step of the I-9 process as it actually works inside a Justworks PEO relationship. We’ll cover what Justworks handles, what you handle, where the handoffs happen, and where employers most commonly make mistakes. If you want a broader overview of how PEO co-employment affects HR compliance obligations generally, that foundational context lives in our PEO compliance resource hub. Here, we’re staying focused on I-9s specifically.

No generic compliance disclaimers. No filler. Just a clear walkthrough of the process so you can handle this correctly.

Step 1: Understand the I-9 Responsibility Split Between You and Justworks

Before you touch the Justworks platform, get clear on who owns what. This is the step most employers skip, and it’s the one that creates legal exposure later.

Under a standard co-employment arrangement, Justworks takes on certain employer responsibilities: payroll tax filing, benefits administration, workers’ compensation coverage, and HR infrastructure. That’s the value proposition. But I-9 compliance doesn’t transfer cleanly in the same way. For a deeper look at what Justworks actually covers on the compliance front, our breakdown of Justworks PEO HR compliance services lays out the specifics.

The Immigration Reform and Control Act places I-9 obligations on the employer who hires the individual for employment in the United States. In a co-employment structure, there are two employers: Justworks as the employer of record for certain purposes, and you as the worksite employer. The critical question is which party completes Section 2, because under IRCA, that party bears primary liability for the accuracy of the verification.

In most Justworks arrangements, the worksite employer, meaning you, is responsible for physically examining documents and completing Section 2. Justworks provides the digital infrastructure: the onboarding workflow, the electronic I-9 form, and the record storage. But the actual in-person document review is your job unless your specific service agreement says otherwise.

This distinction matters enormously when it comes to fines. USCIS civil penalties for I-9 violations are assessed per violation, and they adjust annually. Substantive violations, such as failing to properly complete or retain an I-9, carry different penalty tiers than knowingly hiring unauthorized workers. The entity that signed off on Section 2 is the one USCIS looks at first.

Action item: Pull out your Justworks service agreement and read the section on I-9 compliance responsibilities. Specifically, look for language clarifying which party is responsible for Section 2 completion and which party retains the records. If it’s ambiguous, contact your Justworks account manager and get clarification in writing before your next hire.

One more thing worth noting: Justworks holds IRS CPEO (Certified PEO) status. That certification affects certain payroll tax liabilities and gives clients some protections around employment tax obligations. It does not change your I-9 compliance obligations. Don’t let the CPEO designation create a false sense of coverage that doesn’t exist.

Step 2: Trigger the I-9 Workflow Before the Employee’s First Day

Once you’re clear on the responsibility split, the next step is operational. When you add a new employee in Justworks and set up their onboarding, the platform automatically initiates the I-9 workflow as part of that process. If you haven’t gone through the initial setup yet, our walkthrough of the Justworks PEO onboarding process covers how the full flow works from start to finish.

The employee receives an invitation to complete Section 1 digitally. Section 1 covers their personal information, attestation of citizenship or immigration status, and signature. This is the employee’s section, not yours, and it needs to be completed no later than the end of their first day of employment.

The timing rule here has a specific nuance that trips people up. Section 1 cannot be completed before the employee accepts the job offer. You’re not allowed to require I-9 completion as a condition of the offer itself. The form is completed after acceptance, on or before day one. If you send the Justworks onboarding invite the moment an offer is extended, make sure the employee understands they complete Section 1 after formally accepting, not as part of deciding whether to accept.

Practically speaking, the cleanest approach is to send the onboarding invite immediately after the offer is accepted, with enough lead time that the employee can log in and complete Section 1 before or on their first day. Don’t wait until the morning of day one to send the invite. If there are technical issues or the employee doesn’t check email promptly, you’ll be scrambling.

Tip: Justworks’ onboarding flow bundles I-9 Section 1 completion with other new hire paperwork like direct deposit setup and benefits enrollment. Employees sometimes skip or defer items in a long onboarding checklist. Make it explicit in your communication that the I-9 section is time-sensitive and legally required, not optional.

Once Section 1 is submitted by the employee, you’ll receive a notification in Justworks that it’s ready for your review. That’s your cue to move to Section 2.

Step 3: Complete the Physical Document Review for Section 2

This is the step that can’t be delegated to software. Section 2 requires you, or someone you’ve authorized as your representative, to physically examine original documents in person. Not copies. Not photos. Not scans sent over email. Original documents, in hand, in front of the employee.

Justworks does not send a staff member to your location to do this. The platform supports the administrative side of Section 2, but the physical examination is entirely on you as the worksite employer.

The employee must present documents from one of two combinations. They can present a single List A document, which establishes both identity and work authorization, such as a U.S. passport or permanent resident card. Or they can present one document from List B, which establishes identity, combined with one document from List C, which establishes work authorization. Common examples include a driver’s license paired with a Social Security card, or a state ID paired with a birth certificate.

Justworks’ platform will walk you through the acceptable document lists during the Section 2 completion process, which helps. But there are two mistakes worth calling out specifically. For comparison, you can see how other PEO providers handle this same step in our guide to I-9 verification through Insperity.

Document abuse: You cannot ask for specific documents or request more documents than required. If an employee presents a valid List A document, you must accept it. You cannot say “I’d prefer to see a passport instead” or ask for additional verification beyond what IRCA requires. This is called document abuse, and it’s a violation in itself, separate from the underlying I-9 requirement.

Deadline clarity: Section 2 must be completed within three business days of the employee’s first day of work. Business days, not calendar days. If someone starts on a Thursday, you typically have until the following Tuesday. But don’t use that buffer as a habit. Complete Section 2 on day one or day two whenever possible. Tight deadlines have a way of compressing further when other things come up.

For remote employees, this step gets more complicated. We’ll address that specifically in Step 7, because it’s a scenario that deserves its own treatment.

Step 4: Enter Document Details and Submit Through Justworks

After the physical examination, you enter the document information into Justworks. This includes the document title, issuing authority, document number, and expiration date if applicable. Once submitted, Justworks stores the completed I-9 electronically.

Electronic storage of I-9 records is permitted under DHS regulations at 8 CFR 274a.2, provided the system meets specific requirements around accessibility, audit trails, and retrieval. Justworks’ system is designed to satisfy these requirements, which is a meaningful operational advantage over paper filing. The Justworks HR technology platform handles the digital infrastructure behind this storage and retrieval process.

That said, the system is only as accurate as what you enter. A few common data entry errors that show up in audits:

Transposed document numbers: It’s easy to flip digits when entering a passport number or document ID. Double-check character by character before submitting.

Wrong expiration dates: Some documents have multiple date fields. Make sure you’re entering the document expiration date, not an issuance date or a visa validity date, which are different things on certain documents.

Leaving fields blank incorrectly: Some fields are legitimately N/A for certain document types. Others are required. Justworks’ platform will flag required fields, but it’s worth understanding which fields apply to which document types before you’re sitting across from a new hire trying to figure it out in real time.

On retention: Justworks holds I-9 records for the legally required period, which is three years after the hire date or one year after the employee’s termination, whichever is later. You don’t need to manage this manually. But you should confirm with Justworks what happens to those records if you ever leave their platform. Get clarity on data portability before you need it, and review the Justworks cancellation policy so you understand the process for transitioning records.

Step 5: Handle E-Verify If Your Situation Requires It

E-Verify is a separate federal system that cross-checks I-9 information against Social Security Administration and DHS databases to confirm work authorization. It’s not the same as the I-9, and it’s not universally required. Whether you need to use it depends on your situation.

Federal contractors and subcontractors covered by the Federal Acquisition Regulation (FAR) E-Verify clause are required to use E-Verify for all new hires and existing employees working on covered contracts. If you hold federal contracts, this isn’t optional.

State mandates vary significantly. States like Florida, Texas, Alabama, Georgia, Mississippi, and others have enacted laws requiring E-Verify for some or all private employers, though the scope, thresholds, and enforcement mechanisms differ. These requirements change periodically, so confirm your current state obligations directly with your employment counsel or your Justworks account team rather than relying on any static list. If you’re wondering whether Justworks is worth it for your compliance needs specifically, that evaluation should factor in E-Verify support.

Justworks integrates with E-Verify for employers who need it. If E-Verify is activated on your account, the case is typically initiated automatically when Section 2 is completed. The system will return one of several results: Employment Authorized, Tentative Nonconfirmation (TNC), or in some cases a referral for further review.

If you receive a TNC, the rules are strict. You cannot take any adverse action against the employee, including termination, suspension, or reassignment, during the resolution period. The employee has the right to contest the TNC, and you’re required to give them that opportunity. Justworks’ platform will walk you through the procedural steps, but the legal obligation is yours. Firing someone over a TNC before it’s resolved is itself a violation.

Action item: If you operate in a state with E-Verify mandates or hold federal contracts, confirm with Justworks that E-Verify is activated on your account and that your onboarding workflow initiates cases automatically. Don’t assume it’s running if you haven’t verified it.

Step 6: Stay on Top of Reverification and Ongoing Compliance

I-9 compliance isn’t a one-time event. Some employees present work authorization documents that carry expiration dates, such as Employment Authorization Documents (EADs) or certain visa-based work authorizations. When those documents expire, you’re required to reverify the employee’s continued work authorization.

Justworks can send automated reminders when document expiration dates are approaching. Use them. But a reminder is only useful if someone acts on it. Build a process on your end so that whoever receives the notification actually follows through, whether that’s an HR contact, an office manager, or you directly. Understanding the Justworks customer support model helps you know who to escalate to when questions arise during reverification.

There’s a critical rule here that gets violated more often than it should. You must not reverify U.S. citizens or lawful permanent residents. Their work authorization doesn’t expire, and initiating a reverification process for them constitutes discrimination under IRCA’s anti-discrimination provisions. If an employee presented a U.S. passport or a green card during original onboarding, you don’t touch their I-9 again unless there’s a specific lawful reason to do so.

For employees who do require reverification, you use Section 3 of the original I-9 form, or in some cases a new I-9 form entirely. Justworks’ platform handles the form selection, but it’s worth understanding the logic: Section 3 is for reverification, rehires within three years, and name changes. If Section 3 has already been used, you complete a new I-9.

From an audit perspective, clean reverification records are nearly as important as clean original I-9 records. An ICE inspection will look at both. Having timestamped digital records through Justworks, with clear reverification entries, is a meaningful advantage over trying to reconstruct paper records after the fact.

When Justworks’ I-9 Process Isn’t Enough

Justworks handles the I-9 process well for straightforward hiring situations: local employees, in-person onboarding, standard document types. But there are scenarios where the platform’s support has real limits, and you need to plan around them.

Remote hires with no local office presence: If you’re hiring someone in a state where you have no office and no local staff, the in-person document examination requirement creates a problem. Justworks doesn’t send a verifier to your remote employee’s location. You need to designate an authorized representative, which can be any person you trust to examine documents on your behalf. That could be a notary, a local HR service, or even a trusted third party. The employer remains legally responsible for the authorized representative’s actions, so choose carefully and document the arrangement.

Note: DHS introduced alternative examination procedures in 2023 for certain employers enrolled in E-Verify in good standing. These procedures allow for remote document examination under specific conditions. If this applies to your situation, confirm with Justworks whether your account setup supports the alternative procedure and what documentation is required.

High-volume or high-turnover hiring: In industries like food service, construction, or retail, the three-business-day window can become operationally tight when you’re onboarding multiple people simultaneously. Justworks’ automation helps with the administrative side, but it doesn’t eliminate the physical verification bottleneck. If you’re regularly hiring five or more people per week, you need a clear internal process, not just a platform. For context on how the platform scales, our analysis of Justworks PEO for 50 employees covers what changes at higher headcounts.

Complex compliance environments: If you operate across multiple states with different E-Verify mandates, employ workers on visa-based authorizations with varying expiration timelines, or work in industries that face frequent I-9 audits, Justworks’ built-in tools may not be sufficient on their own. In those cases, a dedicated immigration compliance layer, whether that’s specialized counsel or a compliance service, adds a level of oversight that a PEO platform isn’t designed to replace.

If you’re evaluating whether your current PEO is actually equipped to support your compliance needs, that’s a legitimate reason to look at alternatives. Different PEO providers handle compliance support differently, and the gap between basic platform tools and active compliance advisory can be significant. You can see how other providers approach the same I-9 process in our walkthrough of I-9 verification through Paychex PEO.

Your I-9 Compliance Checklist with Justworks

Here’s a quick-reference summary of the key steps and deadlines covered in this guide.

Before day one: Review your Justworks service agreement to confirm Section 2 responsibility. Send the onboarding invite immediately after the offer is accepted so the employee can complete Section 1 on or before their first day.

Day one: Confirm Section 1 is completed by the employee. If E-Verify is required, make sure it’s activated on your account.

Within three business days of the start date: Complete Section 2 by physically examining original documents in person. Enter document details accurately into Justworks. If E-Verify applies, the case should be initiated within three business days of hire as well.

Ongoing: Monitor Justworks reminders for expiring work authorization documents. Reverify only employees who require it. Do not reverify U.S. citizens or permanent residents. Keep your authorized representative process documented for remote hires.

Justworks gives you solid infrastructure for I-9 management. The digital workflow, electronic storage, and E-Verify integration are real operational advantages. But the platform doesn’t absorb your legal responsibility. The physical verification, the judgment calls on document acceptability, and the compliance decisions remain yours.

If you’re currently evaluating PEO providers or coming up on a renewal and want to understand how different providers handle compliance support, it’s worth taking a hard look at what you’re actually getting. Most businesses overpay due to bundled fees and unclear administrative markups. We break down pricing, services, and contract structures so you can make a smarter decision. Compare your options before you sign anything.