An employment verification letter is a legal statement that proves your status of employment. Additionally, it also provides details on your income to any parties that may be interested – Typically, this includes rental companies, landlords, credit unions, banks, creditors, and the like. It is most commonly requested when an individual is interested in purchasing a property and would like to apply for financing and/or a mortgage. The person who requests the information will receive this letter, assuring them of the potential buyer’s income and employment status.
What Does an Employment Verification Letter Verify?
An employment verification letter, primarily, verifies two things – employment status and income. This is because it is typically required when people apply for financing, and so, the creditor needs a statement that assures them that the applicant has access to a consistent source of income.
Additionally, it contains the following particulars:
- Current employer – The letter typically has the current employer listed and, upon request, can provide details on past employers as well.
- Position – The letter will also provide the applicant’s role and title at the employing organization/entity.
- Time of employment – The letter will provide a detailed history of the applicant’s time with the current employer, as well as past employers on request.
- Income – The letter will provide details on income, such as pay-schedule, as well as the amount the applicant is being paid.
Other than these particulars, there isn’t much to an employment and income verification letter. These details serve the interests of the creditor. In the interest of privacy, additional details aren’t provided. Creditors may also request proof of wages, tax forms, and a credit report as well.
Drafting an Employment Verification Letter
When a creditor requests an employment verification letter, the onus to provide one falls upon the applicant and the employer. As a result, the drafting of the letter is their responsibility. Fret not; however – drafting an employment verification letter is a very straightforward process. To help you out, we’ve compiled a sample employment verification letter that may be used as-is, or modified to best suit your needs. Our sample letter can be found below.
Employment (Income) Verification Letter Samples
Sample Letter 1
EMPLOYER NAME ______________________________________________
EMPLOYER MAILING ADDRESS ______________________________________________________
This letter serves as a confirmation of the employment status of one, _
(applicant name), living at ______________________________________________________(applicant mailing address). (applicant name) has been employed at our organization since (employment start date) and continues to work at our organization presently. Currently, the employee in question holds full-time status at our offices and serves us in the capacity of (job title). The employee is paid a rate of $_ (here, the employer will have to provide specifics – hourly rate or monthly packages etc., as well as the pay-schedule.) at regular intervals of . The employee is also entitled to additional benefits that include ___________________________________________________
(The employer must also show what benefits they offer – health care, insurance, paid leave etc.)
This serves as a legal declaration of the employee’s status and may be used as proof of employment status and income.
EMPLOYER NAME ______________________________________________
EMPLOYER REPRESENTATIVE ______________________________________________
EMPLOYER REPRESENTATIVE SIGNATURE ______________________________________________
DATE ______________________________________________
Free Templates
Following are some free downloadable templates for you:
FAQs
The legal mechanism used to verify employment is known as an employment verification letter. It is a letter provided by the employer of an individual upon request and typically confirms their employment status and lists details regarding their income.
Technically speaking, yes, an employer may refuse to verify employment status. That being said, it is common business practice and ethics to provide a letter of verification of employment, as it is necessary for people to finance houses, vehicles, etc.
An employment verification letter usually contains basic personal information, employment status, terms of employment, income, and payment schedule. Upon request and authorization, the employment verification letter may have additional details, such as benefits, schedules, etc.
