An Employment verification letter is a form that shows the wages or salary earned by an individual or employee at a given organization. An employment verification letter is mostly required when an individual is in need of housing or they are applying for a mortgage. This letter is particularly asked for in order to verify that the individual has a stable source of income and therefore they can afford the monthly payments.
Who Requires a Letter of Employment?
A letter of employment can be required by either a current or former employee in order to verify their payment history to a new employer or verify their current salary.
An employment verification form is also used to verify an individual capacity to make monthly payments on major issues such as rent, loans, or mortgages. A landlord or property manager for example might require a letter of employment from a tenant if the rent is high. This will be in line with ensuring that the person is able to pay the amount needed. All banks also require that individuals applying for a mortgage have an employment verification for a mortgage for their application to go through.
Additionally, a new employer might need to verify your former salary and position you have been holding and thus they will require you to produce an employment verification letter.
An official employment verification request form can be requested by an organization for the purpose of streamlining activities.
What Entails an Employment Verification Letter PDF?
- The name of the company/organization
- The address of the company
- The Former or current job title of the employee at play and their responsibilities
- Date of employment for the current or former job
- Salary details
- Raises and bonuses
- Eligibility for getting hired if you are a former employer
- The name, contact details, and signature of the person who wrote the letter
However, an employment verification letter template is used to customize letters into the requirements of the person who requested it. It is not necessary to add more information, only include what you have been requested for.
How is an Employment Verification Form Written?
An employment verification letter is a document that gets to be reviewed by a third party and that’s why it should be treated with utmost competency like any other company document.
First of all, this letter should be typed below your company’s letterhead with relevant contact and company details. Just below the letterhead add information such as the verifier’s name, company name, address, state, city, and zip code.
If in any case, you have the name and the address of the person reviewing the employment verification letter, add them below the date.
The body of an employment verification letter is dependent on what the third-party reviewer asked for. For example a letter of employment for the landlord only needs to verify the tenant’s income and their capability to pay the house. However, a new employer might require further details such as employment history and salary details as well.
The last paragraph of an employment verification letter should comprise the contact details of the person who is verifying the employee’s information. And complete it with a signature, all your names, and the position you hold in the organization.
How to Verify an Employment Verification Letter PDF?
Before a bank approves a loan or mortgage or before a landlord allows a tenant to move into their property, or before a company sends a letter of a job offer to a new employee, they all ask for an employment verification letter.
The person being evaluated is required to produce two documents of proof of income in order to ascertain their claims to the requester. They can produce documents such as;
- Bank statements
- An employees compensation letter
- Social security proof
- Wage and tax information
- Tax returns
Furthermore, there are people who have their employment verification letter acknowledged by the notary public. This goes a long way in endorsing the person and adds even more confidence to the third party.
How can Self Employed Individuals Prove Their Income?
For self-employed people, they are the only people who can provide their personal income verification proof. The question with most people is whether you can personally write a proof of income letter for yourself if you are employed.
The answer to that is that yes you can write an income verification letter for yourself. However, you will need to attach the following documents as supporting evidence.
- The IRS form 1099 Miscellaneous income that is used by freelancers to determine any work they did and were paid $600 and above
- The tax returns
- Personal Bank statements
The Human Resource managers, managers, and CEOs, should have basic knowledge of how to draft a letter of employment. However, you can avoid the hustle and use the online template that has been developed to make work easier. The online template for building employment verification letters can assist you to come up with the letter in a matter of minutes.
If you are self-employed and have been hired by a specific company to assist them to complete a project or task, you can use an Independent Contractor Agreement to formulate the employment verification letter.
An employment verification letter is a basic proof of an individual income and it is very important for landlords before issuing keys to tenants or lenders before giving loans and mortgages. The letter helps in reviewing a person’s salary and see how eligible they are for a loan, next job, or rental house.