Official Website of the United States Department of Homeland Security

Yes Co-employment arrangements can take many forms. As an employer, you continue to be responsible for compliance with Form I-9 requirements.

If the arrangement into which you have entered is one where an employer-employee relationship also exists between the PEO and the employee (e .g ., the employee performs labor or services for the PEO), the PEO would be considered an employer for Form I-9 purposes and:

  • The PEO may rely upon the previously completed Form I-9 at the time of initial hire for each employee continuing employment as a co-employee of you and the PEO, or
  • The PEO may choose to complete new Forms I-9 at the time of co-employment.

If more co-employees are subsequently hired, only one Form I-9 must be completed by either the PEO or the client. However, both you and your PEO are responsible for complying with Form I-9 requirements, and DHS may impose penalties on either party for failure to do so. Penalties for verification violations, if any, may vary depending on:

  1. A party’s control or lack of control over the Form I-9 process,
  2. Size of the business,
  3. Good faith in complying with Form I-9 requirements,
  4. The seriousness of the party’s violation,
  5. Whether or not the employee was authorized to work,
  6. The history of the party’s previous violations and
  7. Other relevant factors.
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