By Mandy Nevius, MBA, SPHR, Human Resources Director
New payroll and HR compliance considerations
Updates to Form I-9
The United States Citizenship and Immigration Services (USCIS) released an updated Form I-9 on April 3, 2025, with an effective date of January 20, 2025. The new release has minor changes in language and an updated privacy notice. Key changes include:
- Renaming the fourth checkbox in Section 1 to “An alien authorized to work”
- Revising the descriptions of two List B documents in the Lists of Acceptable Documents
- Adding appropriate statutory language and a revised Department of Homeland Security Privacy Notice to the instructions
As of April 3, 2025, E-Verify and E-Verify+ will reflect the updated citizenship status selection.
Previous editions of Form I-9 will remain valid until their respective expiration dates.
With the increased focus on immigration enforcement, employers should carefully review their personnel files to ensure that all employees have valid I-9 forms and supporting documentation. Adhering to these regulations is crucial to avoid penalties or audits by U.S. Immigration and Customs Enforcement (ICE).
FSA resumes Administrative Wage Garnishment
The U.S. Department of Education (ED) announced that its Office of Federal Student Aid (FSA) will resume involuntary collections of defaulted federal student loans on May 5, 2025. The ED has not collected on defaulted student loans since March 2020.
To collect on defaulted student loans, the FSA will restart the Treasury Offset Program (administered by U.S. Department of the Treasury), which will include actions such as withholding tax refunds and garnishing wages beginning on May 5, 2025. Later this summer, the FSA will also resume Administrative Wage Garnishment (AWG), which can require an employer to withhold up to 15% of an employee’s disposable income for loan repayment. Prior court approval for AWG is not required. Read the full press release for more information.
Sources:
- Five Minute Tax Briefing® | May 13, 2025 | Thomson Reuters/PPC
- USCIS Releases New I-9 Form | Shaw Law Group, PC
- USCIS Release New Form I-9 | SHRM
About the Author
Mandy Nevius, MBA, SPHR, Human Resources Director
Mandy has over 20 years experience working with public accounting firms in the areas of training, career development, compensation, and recruiting. She shares her knowledge and insights on labor regulations and upcoming changes with her colleagues and the Firm’s clients.
More Insights from Mandy NeviusThe information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.
