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, immigration purposes, and other use cases.
Employment Verification vs. Salary Verification
The main objective of an employment verification letter is to verify employment status rather than providing specific salary information, whereas a salary verification letter specifically confirms an individual’s income or salary with a company.
What Is an Employment Verification Letter?
An employment verification letter (or proof of income letter) verifies a previous or current employee’s salary, employment history, and job responsibilities.
A verification letter is also a common third-party prerequisite to confirm that an individual has the income to make monthly payments for a significant expenditure — whether for a lease, mortgage, or loan.
Verifying parties typically submit this document in business letter format with their name, job title and contact information, current date, and the employee’s income or job status. It does not only verify employment but also may include additional details such as eligibility for rehire or the reason for termination in cases where applicable.
Who Needs an Employment Verification Letter?
The following people, businesses, and organizations may ask for employment verification letters to learn more about an individual’s work experience and salary details:
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Landlords:
- Purpose of the Letter: To confirm an individual will be responsible and make timely rent payments.
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Mortgage lenders:
- Purpose of the Letter: To assess applicants’ income stability and ability to repay the loan when they apply for loans, mortgages, or other financial products.
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Prospective employers:
- Purpose of the Letter: To confirm the employment details the candidate provides. They may reference the information provided on the employee’s I-9 Form to confirm their employment eligibility and status.
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State and federal government agencies:
- Purpose of the Letter: To determine their eligibility when they 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.
Information to Avoid
- Employers must exercise honesty and discretion when providing information about former employees. They should stick to factual, employment-related details like dates and job titles, avoiding delving into termination reasons.
- Compliance with federal, state, and local laws regarding disclosure is essential, especially considering sensitive issues like child custody cases, where the letter’s content could be used as evidence.
How to Verify Employment
Step 1 – Receive the Individual’s Employment Verification Letter
If you haven’t yet received an individual’s income verification letter, you can request that they send it to you. Examine the document for potential issues, such as discrepancies in basic information or inconsistencies with the individual’s provided details.
Step 2 – Look Up the Organization
Check the status of the business entity to confirm it’s real. Every state has a searchable business directory tool that you can use 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
Get in touch with 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 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 (Form 1040)
- Wage and tax statements (W-2 Form)
- Social Security proof of income/benefits verification
- Proof of workers’ compensation
Step 5 – Obtain the Previous Two Years’ Tax Returns
In many cases, self-employed individuals receive payments in cash. In such situations, it is advisable to obtain at least the tax returns from the past two years. Every individual in the U.S. must fulfill their tax responsibilities to the federal government, so if they earn any form of income, they will have filed a tax return.
- For Individuals: Request IRS Form W-2.
- For Self-Employed Individuals: Request IRS Form 1040. Additionally, ask for IRS Form 4506-T, which allows the federal government to authenticate the self-employed individual’s income from the previous year. Processing is free and typically takes around one business day.
Step 6 – Run a Credit Report
Use a background check authorization form to collect the person’s information. Then, run a credit report through one of the three major credit reporting agencies: Transunion, Experian, and Equifax.
How to Request an Employment Verification Letter
Here’s how to ask for an employment verification letter depending on whether you’re a former employee or an external party:
If You’re the Employee
- Consult your supervisor or manager. This is often the most straightforward method for requesting the letter. However, ensure to offer complete details and context for clarity.
- Contact the human resources department. Certain organizations have established formal procedures requiring engagement with the HR department.
- Complete a request form. Fill out the request form your HR department provides you. Supply specific information you’d like them to include in the letter, such as your employment dates and status (full-time versus part-time).
- Note the recipient. Indicate if you want them to send the letter to the requestor or give it to you so you can supply it to the appropriate party.
- Follow up. If you haven’t received word that they’ve written and delivered your letter within a reasonable timeframe, check on the status of your letter.
Employment Verification Request Example
Hi [Insert name],
I am applying for a lease, and the landlord has requested proof of my employment. They’ve asked that you verify my dates of employment, job title, and salary.
Their address is: [Insert address]
They also accept verification via fax at [insert number]. Please let me know if there’s anything else you need.
Thanks!
[Name]
[Position and Company]
If You’re an External Party
- Seek authorization from the individual. You must obtain explicit permission from the employee before you pursue the process of getting an income verification letter.
- Contact the employer. Find the designated contact for employment verification requests at the individual’s company.
- Specify the information you want. Be specific about the information you want, such as their income and employment length.
- Indicate the delivery method. Clarify how you’d like to receive the letter, whether via certified mail, fax, or in person.
How to Write an Employment Verification Letter
Here are the steps to follow when writing an employment verification form:
Step 1 – Provide the Employer’s Details
Write down the employer’s details. Include the name (or company) of the current or past employer verifying the employment and 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 verified person. 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. Before sending, ensure to carefully edit and proofread the letter.
Step 5 – Get Notary Acknowledgement (Optional)
While this letter doesn’t require notarization, it can add to its legitimacy. If you’d like, have a notary witness the employer’s signature for authenticity.
Employment Verification Letter Sample
Download an employment verification letter template in PDF or Word format below:
Frequently Asked Questions
How much proof of income do I need to provide?
It depends. Some lenders may want to see you earn a specific amount to ensure you meet your monthly payments. They may also want to see income verification for a specific period, such as the last two months.
Can I use a bank statement alone as proof of income?
You can use bank statements as supplementary documents, but landlords and lending financial institutions may often request pay stubs as primary proof of income.
What if I don’t have any traditional proof of income?
If you’re applying for a loan, you can have a cosigner sign for you. This person pledges to pay back the loan if you default, so you won’t necessarily need to provide proof of income.
Suppose you’re applying to rent an apartment or home. In this case, you may need to present nontraditional proof of income, such as bank statements, a letter from your current employer, an invoice/contract of the work you’ve completed recently, or a profit/loss statement.
How long should I keep copies of my proof of income documents?
It depends on the exact document. According to the IRS, you should keep tax returns and related documents for two years from when you paid your obligations or three years from when you filed the original return (whichever is later).
Retain your paystubs until you receive your W-2 for that year. Retain bank statements for at least one year unless you need them for important matters (like home purchases or taxes). In this case, keep them for at least three years.
