An employment verification letter, also known as a letter of employment or proof of income letter, is a form used to verify the income and employment history of a previous or current employee.
For your reference, an employment verification letter can also be referred to as a:
- Proof of Employment Letter
- Income Verification Letter
- Employment Confirmation Letter
- Salary Verification Letter
- Work Verification Letter
1. Who Needs a Letter of Employment?
A former or current employee may request employment verification to certify their salary and employment history for a new employer.
An employment verification form is also a commonly prerequisite used by a third-party to verify that an individual has the income necessary to make required monthly payments on a major expenditure — whether it be for a rental application, mortgage, or loan.
For example, a landlord may require a letter of employment for renting an apartment if the rent exceeds a certain amount. Additionally, all banks require employment verification for mortgage applications to be considered.
Furthermore, a new employer may request employment verification to ensure that you’ve been truthful about your previous salary and position.
To streamline processes, many companies have an official employment verification request form which can be filled out by current and former employees.
2. How to Write an Employment Verification Form
An employment verification form will be reviewed by a third-party, so it should be treated as formal company documentation.
Below your company letterhead, include relevant contact and company information such as:
- Verifier’s name
- Company name
- Address
- City, state, ZIP code
If you have the name and address of the third-party reviewing the document, include it in the salutation below the date.
The body of the salary verification letter will depend on the requirements of the requesting party. For example, a landlord may only need to verify a potential tenant’s current income, whereas a new employer may require employment history as well as salary details.
If you don’t know the requesting party’s requirements, a standard verification of employment form should include the following information:
- Employment start date
- Employee name
- Job title
- Salary
- Annual bonus amount
- Employment end-date (if necessary)
The final paragraph of an employment confirmation letter should include the contact details of the individual responsible for verifying the employee’s information.
Conclude the work verification letter with your signature, full name, and job title.
3. How to Verify a Proof of Employment Letter
A proof of income letter is often the last step taken by a bank before approving a loan, a landlord before handing over the keys to a tenant, or a company prior to sending out an offer letter to a candidate.
In order to protect against false claims, third parties often require employees to substantiate their employment verification letter with at least two proof of income documents.
The following documents are accepted as proof of income:
- Paystubs
- Tax returns (1040)
- Wage and tax statements (W-2)
- Social security proof of income / Benefit Verification Letter
- A Workers’ compensation letter
- Bank statements
In addition to supporting documentation, you can have your income verification form acknowledged by a notary public. Notarizing your verification letter confirms its authenticity and adds an extra layer of trust.
Proof of Income for Self Employed Individuals
If you’re self-employed, there’s technically no one to provide an employment income verification except yourself.
So, can you write a proof of income letter for self employment on your behalf?
The answer is “yes”. Write an income verification letter and use the following accepted documentation to prove your income:
- IRS Form 1099 Miscellaneous Income – used by freelancers to record any job that paid $600 or more
- Tax returns
- Bank statements
Use our Independent Contractor Agreement if you’re self-employed but have been hired by a company to complete a specific project or task.
So, whether you’re self-employed, an HR director, a manager, or a CEO, you now know how to draft a letter of employment. Or you can skip the hard work and use our employment verification letter builder to create one in minutes.
