What’s the Difference Between Form I-9 and Form 1099? A Complete Guide

Juan José Restrepo Gómez | 2024-12-20

The Form I-9 and Form 1099 are two essential documents that employers and employees must understand. While both forms relate to employment, they serve distinct purposes and have different requirements. Form I-9 verifies an employee's identity and eligibility to work legally in the United States. On the other hand, Form 1099 reports various types of income paid to independent contractors, freelancers, and other non-employees. As an employer or employee, you must know the key differences between these forms to ensure compliance with federal regulations and avoid potential penalties. Looking for a comparison between W9 and 1099 forms? We have a full guide for you here: W9 vs 1099: What's the Difference and When You Need Each . What is Form I-9? Form I-9, officially known as the Employment Eligibility Verification form, is a document required by the U.S. government to ensure that all employees hired to work in the country are legally authorized to do so. As an employer, you’re responsible for collecting and maintaining this form for every employee you hire. The employee must complete Section 1 of Form I-9 no later than the first day of employment. The employer must examine the employee's identity and employment authorization documents and complete Section 2 within three business days of the employee's first day of work for pay. Examples of Acceptable Documents for Form I-9 When completing Form I-9, employees are required to provide original documentation verifying their identity and employment authorization. The documents fall into three categories: List A verifies both identity and work authorization, List B establishes identity only, and List C proves employment authorization. Employees can choose which documents to present from the acceptable lists, and employers cannot dictate their choices. 1. Documents That Establish Both Identity and Employment Authorization (List A) These documents serve as a one-step verification for both identity and legal work status: U.S. Passport or Passport Card : Confirms both identity and authorization to work in the U.S. Permanent Resident Card (Form I-551) : Commonly called a "Green Card," it verifies that the individual is authorized to work permanently in the U.S. Foreign Passport with a Temporary I-551 Stamp : Acceptable for non-citizens with temporary work authorization. Employment Authorization Document (Form I-766) : This document permits legal work in the U.S. and was issued by the Department of Homeland Security. 2. Documents That Establish Identity (List B) If the employee doesn’t have a List A...