A method is provided for determining employer compliance in determining employment eligibility requirements in accordance with federal immigration regulations. Compliance alerts and compliance tips are displayed for guiding employers in verifying employment eligibility. Completed employment eligibility forms are automatically audited to analyze whether the employer has accurately completed the employment verification. The completed forms are audited by applying various compliance rules to a completed employment eligibility form, presently a Form I-9, to determine compliance with the applicable regulations. A listing is provided of various errors and additional data required to complete the audited form. The method is preferably administered by a single service provider for multiple employers, to assure that changes in the applicable regulations are regularly incorporated. A central system is provided for managing all of the employment eligibility forms associated with particular employers, to assure continued compliance with federal regulations.