An employment verification letter confirms an individual’s current or past employment status and details. It validates income or employment history for loan applications, lease agreements, or other verification purposes.
Landlords and others renting real estate use this letter to ensure potential tenants have a job and the income to make long-term rent payments.
What are you able to verify?
- Individual’s position/title.
- Duration of employment.
- Salary or compensation details.
- (Occasionally) Job performance or standing within the company.
What Is an Employment Verification Letter?
An employment verification letter, or proof of income, verifies a previous or current employee’s salary, employment history, and job responsibilities.
A verification letter is also a common third-party prerequisite to verify that an individual has the income to make monthly payments for a significant expenditure — whether for a rental application, mortgage, or loan.
Verifying parties typically submit this document in business letter format with their name, job title and contact information, current date, and income or employment verification.
Who Needs an Employment Verification Letter?
The following people, businesses, and organizations may request an employment verification letter to learn more about an individual’s work experience, salary details, and employment salary:
- Landlords: While trying to find the right tenant, a landlord may ask for this letter to confirm an individual will be responsible and make timely rent payments.
- Mortgage lenders: They request that the applicant’s income stability and ability to repay the loan be assessed when individuals apply for loans, mortgages, or other financial products.
- Prospective employers: During the hiring process, a prospective employer may request a letter from a candidate’s previous employer to confirm the employment details the candidate provides.
- State and federal government agencies: State and federal government agencies must often verify your income and employment status to determine your eligibility when you apply for specific positions.
An employment letter may also be necessary for immigration, work permits, or visa processes to assess an individual’s employment status and income.
How to Verify Employment
Step 1 – Receive the Individual’s Employment Verification Letter
If you haven’t yet received an individual’s employment verification letter, you can request them to send it to you. Review the document for red flags, like inconsistency with basic information or if the information the individual provided otherwise doesn’t match their details.
Step 2 – Look Up the Organization
Look up the organization to confirm it’s real. Use your state’s Secretary of State lookup tool to conduct your research. Ensure the author of the individual’s letter matches the information on the Secretary of State’s website.
Step 3 – Contact the Employer
Contact the employer via email or phone to confirm they composed and signed the letter. If you’re contacting them by phone, do so during traditional business hours for the best chance of a response. If the person you want to speak with isn’t available, ask their secretary or assistant to set up a virtual meeting time.
Step 4 – Request Pay Stubs
Ask the individual for two of their most recent pay stubs. If they can’t provide this information, you may instead ask for proof of income like:
- Bank statements
- Tax returns (1040)
- Wage and tax statements (W-2)
- Social Security proof of income/benefits verification
- Proof of workers’ compensation
Self Employed Individuals
To confirm a self-employed individual’s income, you can request bank statements, tax returns, and the IRS Form 1099. They’ll have to write their employment verification letter, but they can support its legitimacy with the proper proof.
Step 5 – Run a Credit Report
Fill out a background check authorization form to get an individual’s permission to conduct a background check. Then, run a credit report through one of the three major credit reporting agencies: Transunion, Experian, and Equifax.
How to Write an Employment Verification Letter
Step 1 – Provide the Employer’s Details
Write down the employer’s details. Write the name (or company) of the employer verifying the employment. Also, provide the address.
Step 2 – Enter the Requesting Party’s Details
Provide the name and address of the party requesting the employment verification, such as a bank or a landlord. If the requester is unknown, leave this blank.
Write the name of the contact person for the party requesting verification. If the requester is unknown, use “To Whom It May Concern” to address the letter.
Step 3 – Fill in Verification Details
Enter the name of the person the employer is verifying employment for. Also, provide their employment details, like their employer’s name, job title, employment start date, and company’s address.
Include supporting documents within this letter to verify the employee’s salary and bonus, if any. Remember that there are state and local laws regarding salary disclosure, and some require employee authorization.
Step 4 – Provide the Employer’s Contact Information
Write the employer’s contact details, including their phone number and email address.
Step 5 – Get Notary Acknowledgement
While this letter doesn’t require notarization, it can add to its legitimacy. Have a notary witness the employer’s signature for authenticity if you’d like.
Employment Verification Letter Sample
Download our template in PDF or Word format below: