Know Everything About Employee Verification Letter – Download free from UBS HR Toolkit

Are you handling the human resource department of your company? If yes, then every once in a while you might receive requests from your employees to provide their employment verification to a third party.

The best way to fulfill these requests is by writing an employment verification letter.

If you are interested in what an employment verification letter looks like, you are at the right place.

This is just a formal document required at various places to ensure that you are or you were working at a company.

Let’s get to know this in brief!!

What is an Employee Verification Letter?

An employment verification letter is a document written by the current or past employer to confirm that an employee or the ex-employee worked at the organization.

The request for the verification letter may come from the prospective employer, an employee, mortgage lenders, prospective landlords, government agencies, or any other agency.

The request comprises confirmation of the employee’s employment history, salary history, and eligibility for rehiring or continuation of employment. The requestor may inquire as to the basis for termination if the employee is fired or otherwise terminated.

For your reference, an employee verification letter is known by other names too. These include:

• Proof of employment letter
• Income verification letter
• Employment confirmation letter
• Salary verification letter
• Work verification letter

Importance of Employee Verification Letter

Do you get the request for an employee verification letter from your employees? Do you know why they need the EVL?

If an employee requests an employee verification letter, it may be because of the following reasons:

• An employee might be applying for a home mortgage or an auto loan. In this case, before approving the loan, the lender needs to confirm that the employee has a steady job or has enough income to pay back the monthly installments.
•  The employee might be looking to rent a home, and the property agent might need to confirm that they have enough to pay the deposit, maintenance, rent, and other necessary expenses.
• The bank needs to see evidence of their current income before deciding whether to approve their request for a loan payment reduction or postponement.
• The employee is trying for an opportunity for other employment and the company wants to verify the information as a part of the background check process.

While the employee may not want to disclose the reason behind submitting the request for the employee verification letter, they still need to explain which pieces of information the third party is looking for and their contact information.

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What is to be Included in Verification Letter

An employee verification letter must contain the following information:

• The employee’s current employer’s company logo or the letterhead.
• Date of issuing the letter.
• Full name of the employee.
• Job Title and responsibilities of the employee in brief.
• Employment dates of the employee i.e., the date when they begin working at the date at which they ended working with the company.
• The employee’s salary. Also, include the bonus if applicable.
• Employer’s address.
• Contact information and signature of the employer.

What Not to Include

An employee verification letter should disclose the aforementioned information. A detailed description of the employee’s performance is not part of an EVL, no matter how glowing it can make the letter.

The information that must not be shared includes age, gender identity, health status, race, and sexual orientation. Sharing any personal information such as an employee’s family situation is also not at all recommended to be included.

How to Check a Proof of Employment Letter

Asking for the proof of employment letter is often the last step a bank takes before approving the loan. Moreover, it is also the final step taken by the landlord before handing over the house keys to the tenant.

Also, companies hiring new employees for open positions ask for employment verification letters to ensure the credibility of the new hire.

Third parties frequently want employees to support their job verification letter with at least two proofs of income documents in order to safeguard against false claims.

Below are the common documents that a company asks for proof of income along with the employee verification letter:

• Payslips
• Tax Returns (1040)
• Wage and Tax Statements (W-2)
• Security benefits evidence of income or a Benefits Verification Letter
• An employee’s compensation letter
• Bank statements

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Proof of Employment for Self-employed Individuals

If you are self-employed, no one is responsible for providing you with the employment verification letter except yourself.

So, is it possible to write an “Income verification letter” for yourself? The answer is “Yes”.

Write the letter on your behalf and use the elbow documents to prove your income:

• Bank Statements
• Tax Returns
• The IRS Form 1099 Miscellaneous Income, which freelance workers use to report any job paying $600 or more

Conclusion

It’s crucial to adhere to a set procedure when drafting an employment verification letter for a current or former employee, to be aware of state regulations governing what information may be disclosed, and to give the necessary information in a polite, succinct manner.

It’s crucial to get your written communication correct because employment verification letters frequently assist employees in getting mortgages, loans, apartments, new jobs, and more. Additionally, a formal letter might enhance the reputation of your company as a whole. Get a ready-to-use, well-crafted employee verification letter format from UBS HR Toolkit.

You can get access to other HR documents like letters, emails, forms, etc on UBS HRMS Software to reduce your documentation workload to 50%.