Employment (Income) Verification Letter (2024)

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, and other use cases.

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.

What Are the Different Types of Acceptable Proof of Income?

Explore the different types of acceptable proof of income depending on the individual’s employment type:

• For employed individuals:
  • Pay Stubs: Pay stubs show an employee’s gross and net income and specify the current pay period. They also show an individual’s year-to-date earnings.
  • Employment Letter: This letter confirms an employee’s work status, salary, and employment terms (such as the number of hours they work).
  • W-2 Form: A W-2 form provides a comprehensive overview of an individual’s income from a particular employer over the year.
• For self-employed individuals:
  • Form 1040: Form 1040 is a tax return that reports a self-employed individual’s income, the taxes they owe the government, and any refunds the federal government owes them. It encompasses various income types, credits, and deductions applicable to the individual.
  • Profit and Loss Statements: Self-employed individuals usually prepare this document themselves to document the revenue, costs, and expenses of their work over a specific period. It highlights their performance and can show income trends.
  • Bank Statements: Bank statements can show consistent income deposits into a bank account. Self-employed individuals can use these documents alongside others to show income flow.

Who Needs an Employment Verification Letter?

The following people, businesses, and organizations may ask for 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: Mortgage lenders often want to assess applicants’ income stability and ability to repay the loan when they 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 workers’ income and employment status 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.

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. 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

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 Request an Employment Verification Letter

Here’s how to ask for an employment verification letter depending on whether you’re the employee or an external party:

If You’re the Employee

1. Contact the human resources department. This department most commonly handles the creation of employment verification letters.
2. Complete a request form. Fill out the request form your HR department provides you. Supply the information you’d like them to include in the letter, such as your employment dates and status (full-time versus part-time).
3. Note the recipient. Indicate if you want them to send the letter to the requesting party or give it to you so you can supply it to the appropriate party.
4. Follow up. Check on the status of your letter if you haven’t received word that they’ve written and delivered it within a reasonable timeframe.

If You’re an External Party

1. Seek authorization from the individual. Acquire explicit permission from the employee before you pursue the process of getting an income verification letter.
2. Contact the employer. Find the designated contact for employment verifications at the individual’s company and inform them of your request.
3. Specify the information you want. Request the information you want, such as their income and employment length.
4. 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

Step 1 – Provide the Employer’s Details

Write down the employer’s details. Write the name (or company) of the current or former 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 an employment verification letter template in PDF or Word format below:

Frequently Asked Questions