I-9 Verification: What Salon Owners Need to Know to Stay Compliant

If you’ve hired employees in your salon or beauty business (or you’re planning to), you’ve probably heard about the I-9 form, but you might not be totally sure what it is, why it matters, or what you’re required to do to stay compliant.

You’re not alone.

As financial partners for beauty business owners, we see this overlooked all the time, and it can lead to some major headaches if not handled properly.

So let’s break it down:
What is I-9 verification, what do salon owners need to do, and how can you stay compliant without the stress?

What Is the I-9 Form?

The Form I-9, officially titled Employment Eligibility Verification, is a legal requirement for all U.S. employers. It’s used to verify the identity and employment authorization of people you hire to work in the U.S.

Who fills it out? Every employee, yes, even part-time stylists or assistants, must complete it when they start.
Who reviews it? You, as the employer, must review and verify the documents they provide within 3 business days of their start date.

Why It Matters for Salon Owners

As a salon owner, you’re not just an artist or a business owner, you’re an employer. And that means you’re legally responsible for ensuring your employee files (including I-9s) are complete, accurate, and up to date.

Failing to comply can result in:

• Hefty fines or penalties

• Issues during audits or inspections

• Potential damage to your business reputation

What You Need to Do to Be Compliant

Here’s a quick checklist of what you’re responsible for when it comes to I-9 verification:

1. Complete the Form Within 3 Business Days

Have your new employee fill out Section 1 on or before their first day.
You must complete Section 2 by the third business day after they start.

2. Physically Inspect Their Documents

Even if you’re onboarding remotely, the law requires you to physically inspect the employee’s identification and work authorization documents. This can be done by a designated third party if needed.

Commonly accepted documents include:

• Passport

• Permanent resident card

• Driver’s license + Social Security card (or birth certificate)

3. Keep the Forms on File

Don’t send the I-9 to anyone, just store it securely for each employee.

You must retain the form for either 3 years after the date of hire or 1 year after termination, whichever is later.

4. Reverify When Necessary

If an employee’s work authorization has an expiration date, you’ll need to reverify with updated documents before it expires.

Pro Tip: Keep I-9s Separate

For easier organization and cleaner audits, we recommend storing I-9 forms in a folder separate from personnel files. It makes it much easier if you’re ever inspected by USCIS or another agency.

I’m a Salon Owner—Do I Need to Do This for 1099 Contractors?

No.
The I-9 form is only required for employees, not for independent contractors.

But be careful: Misclassifying a worker as a contractor when they should be an employee is another huge compliance risk, and something we help our clients navigate all the time.

Need Help Staying Compliant?
We’ve Got You.

Managing your salon’s finances, payroll, and compliance isn’t always easy, but that’s where we come in.

At The Summa Collective, we help beauty entrepreneurs like you:

• Stay compliant with I-9s and other HR essentials

• Set up clean systems for onboarding and payroll

• Avoid costly mistakes with employees and contractors

• Build a business that’s financially strong and legally sound

Book a free consult call today and let’s make sure your salon is set up for success, without the stress.