As a manager or employer, you may occasionally get requests from employees for income verification letters. These letters are usually addressed to a third party, such as a financial institution, and can serve as proof of employment. They confirm the employee’s employment dates, salary information, employment status, and other details.
In essence, what you include in this letter depends on what the third party requires and your company policy. You cannot disclose private information.
Here, we look at the reasons why employees may request this letter. We also review what to include in one and how to draft and send it.
Why Would an Employee Need a Verification Letter?
Employees may not always disclose why they need a verification letter. Nonetheless, if they request it, it could be because they are:
- Applying for tenancy
- Applying for an auto loan or mortgage
- Pursuing another employment opportunity
- Requesting a loan payment deferral or reduction
Have the employee explain what details they want to be included in the letter.
What to Include in an Employment Verification Letter
State laws regulate what information employers can disclose to third parties. As such, you should study them to determine what to include in your document. You may also need a signed release form from your employee. Here is what a typical verification letter might include:
- Employer address
- Company name
- Requester’s mane and address
- Employee name, job title, job description, and current salary
- Employment dates
Employee Verification Letter Format
{Date}
{Company name}
{Company address}
{City, State, Zip Code}
{Recipients’ company/institution}
{Address}
{City, State, Zip Code}
RE: Employment Verification for {Employee Name}
Dear {Mr./ Mrs./ Ms. Recipient’s Last Name} or To Whom It May Concern,
Please accept this letter as verification of {Employee’s name} employment with {company name}. He/she joined our company on {date} as a {full job title} and has held the position for {amount of time}.
{Mr./ Mrs./ Ms. Recipient’s Last Name} earns a salary of {amount}, which is paid on a {monthly/bimonthly/annual} basis.
If you have further questions, contact me at {phone number} or {email}.
Sincerely,
{Your Name}
{Job Title}
Sample Income Verification Letter
8 July 10, 2020
Spikes Limited
203 Main St.
Dallas, TX 45322
Farnet Loan Company, LLC
320 Third Ave.
Dallas, TX 33900
RE: Employment Verification for Christine Alexis
Dear Mr. Colin,
Please accept this letter as verification of Christine Alexis’ employment with Spikes Limited. She was employed on 13 March, 2014 as a product manager and has held the position for 6 years. As of the writing of this letter, Ms. Alexis earns a salary of $120,000.
If you have further questions, contact me at 234-475-0301 or [email protected].
Sincerely,
Chris Miller
Human Resources Manager
Salary Verification Letter Samples and Templates
Drafting a verification letter for every employee can be tedious and time-consuming. Rather than go through the process repeatedly, here is an employment verification letter template and sample for reference. You can use them to formulate your company’s standard draft.
Proof of Income Letter
- MS Word
Income Verification Letter for Self-Employed
- MS Word
Income Verification Letter for Independent Contractor
- MS Word
Salary Confirmation Letter
- MS Word
No Income Verification Letter
- MS Word
Income Verification Letters
An income verification letter is also called a proof of income letter and is a formal confirmation prepared by your employer upon request on the subject of your salary. It verifies that you work for your employer, outlines your employment history, and indicates how much you earn.
Salary Verification Letters
Salary verification letters are documents prepared by your employer upon request to confirm your employment status, history, and current income. They are often requested by an employee to hand over to a government agency, mortgage lender, or prospective landlord.
Proof of Income Letters
Proof of income letters are verification documents written by your employer to confirm that you work for them and earn a certain amount in salary and benefits. In most cases, it is requested by a prospective landlord when they wish to ascertain that you can afford rent.
Income Verification Letter Samples
Income verification letter samples are example of the documents that can be used to prove that an employee works for a company and earns a certain amount in salary. They are prepared by employers and cover several situations where income verification may be required.
Conclusion
Both current and former employees can request an employment verification letter. To meet this demand, you need to learn the state laws regarding the dissemination of such information and formulate a consistent drafting process. An income verification letter is a formal correspondence. As such, you should maintain an informational and professional approach. This should prove helpful to the employee and present your company or business in a positive light.
