To obtain employment verification for a small shop, start by requesting the employee’s signed Form I-9 (Employment Eligibility Verification) from the U.S. Citizenship and Immigration Services (USCIS). This form confirms legal work authorization. Next, verify payroll records, tax documents (e.g., W-2 forms), and state labor department registrations. For federal contracts, use the System for Award Management (SAM) to confirm eligibility. Small businesses can also use third-party services like Equifax Workforce Solutions or Paychex to streamline verification. Ensure all documents comply with the Fair Credit Reporting Act (FCRA) and state laws.

Employment verification is critical to avoid legal penalties and ensure regulatory compliance. The U.S. Department of Labor (DOL) reports that 12% of small businesses face fines annually due to non-compliance with employment laws, averaging $5,000 per violation. Additionally, the USCIS estimates that 3.5 million employment verification requests are processed monthly, with 98% of employers relying on Form I-9 for initial checks. Non-compliance can lead to audits, costly litigation, and reputational damage. For example, a 2022 DOL audit found that 20% of small businesses failed to maintain proper I-9 documentation, resulting in $2.3 million in penalties. Proactive verification safeguards against these risks while ensuring accurate payroll and tax reporting.