HR Compliance Calculator
Add up the federal penalties your HR gaps could cost, from I-9 errors and late W-2s to unpaid overtime and misclassified contractors. Free, no sign-up.
Federal penalty exposure
Turn on the gaps you have and fill them in.
General information, not legal, tax or HR advice. See our Terms.
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A small business's exposure, worked out
3 missing I-9s, 12 late tax forms, 2 unreported hires, no EEOC poster, 2 people owed 4 overtime hours a week for a year at $20, and 1 contractor at $50,000 who should be an employee.
| Gap | Exposure | How |
|---|---|---|
| Form I-9 paperwork | $864 to $8,583 | 3 × $288 to $2,861 |
| Late W-2 and 1099 forms | $4,080 | 12 × $340 a form |
| New hires not reported to the state | $0 to $50 | 2 × up to $25 |
| Missing required posters | $0 to $698 | EEOC up to $698 |
| Unpaid overtime: back wages | $12,480 | 2 × 4 h × $30 × 52 weeks (up to 2 years back) |
| Liquidated damages (an equal amount) | $0 to $12,480 | Owed on top unless a court finds good faith |
| Misclassified workers: back employment taxes | $5,382 | 1 × $5,382 a year × 1: employer FICA and FUTA, 1.5% income tax and 20% of employee FICA (IRC 3509) |
| Total | $22,806 to $43,753 |
Federal maximums for 2026. Sources: 8 CFR 274a.10; Rev. Proc. 2025-32; 42 USC 653a; 29 CFR 1601.30; 29 USC 216 and 255; DOL civil money penalties; 26 USC 3509; OSHA penalties.
Frequently asked questions
$288 to $2,861 for each person whose Form I-9 has a paperwork violation, at the amounts in force since January 2, 2025; the 2026 inflation adjustment was cancelled.
For 2026 forms, filed in 2027: $60 a form if corrected within 30 days, $130 by August 1, $340 after that or if never filed, and for intentional disregard the greater of $690 or 10% of the amounts, with no annual cap.
The unpaid overtime is owed for up to 2 years back, 3 if the violation was willful, plus an equal amount in liquidated damages unless a court finds good faith. A repeated or willful violation also carries a civil money penalty of up to $2,515.
The employer's own Social Security, Medicare and FUTA in full, plus a reduced assessment under IRC 3509: 1.5% of wages for the income tax not withheld and 20% of the employee's FICA, doubled to 3% and 40% when the 1099s were not filed. State unemployment and penalties come on top.
Up to $698 per offense for the EEOC Know Your Rights poster, up to $16,550 for the OSHA poster, and up to $216 for a willful failure to post the FMLA notice.
States set it, up to $25 for each new hire not reported, or up to $500 where the employer and employee agreed not to report.
Related tools and calculators
- New Hire Compliance Checklist by StateFind new hire requirements for your state. Federal and state forms, deadlines, minimum wage, paid leave, and posting requirements. All 50 states covered.Check your state
- Overtime CalculatorTime and a half and double time, the regular rate with bonuses, salaried, tipped and piece-rate pay, and each state's daily overtime rules.Calculate overtime
- Employee Cost CalculatorThe true yearly cost of an employee: 2026 payroll taxes, your state's premiums, benefits and time off, plus labor cost % and the rate to charge.Calculate the cost
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