Proof of Employment Letters is written to verify the concerned individual’s current or previous employment status.
This letter is written by an employer (previous or present) to prove that an employee worked for an organization and is eligible to be hired or granted a request. The proof of employment letter goes by different names, and the other terms arise most frequently based on the form’s purpose, location, agencies, and organizations. As a verifier of these forms, income verification letters, employment confirmation letters, salary, and work experience verification letters may appear on the verification process. It is necessary to know that all these are variant names given to the same document- the proof of employment letter.
Importance of the Proof of Employment Letter
The proof of employment letter is of great significance to the parties involved – the employee and other participants, a new employer, a government-owned organization, private agencies, financial institutions, a prospect landlord, and other groups in this category. An employee will need a proof of employment letter from their employer for a good number of reasons. First, most employers request this form to appeal for a loan or deduction of loan interests from a bank.
Second, these financial institutions usually request an income verification form before the requests are granted. Other reasons could be that an employee of an organization is applying to rent a house and the managing agent wants to confirm that the income of the individual is enough to afford the maintenance and rent costs comfortably, or the individual is applying for a mortgage. The mortgagee needs to verify the legitimacy of the individual’s income status and enough to cover the agreed installment payments. The last general reason is if the employer gets a new job or assignment, the employing organization will require the details of its new worker. Generally, new employers demand proof of employment letters from an employee’s past employer to confirm the employee’s previous work status, records, and income.
The verifier of this form from the letter assesses the employee’s work history abilities and evaluates their strength. With this judgment, the suitability of a prospective employee for the requestor position is passed.
Who May Request Proof of Employment?
Various third-party organizations, banks, property owners, mortgage lenders, federal institutions, and agencies make the provision of proof of employment form by the employee compulsory. Typical examples are mortgage organizations that the income verification letter to check the genuineness of the mortgage seekers before granting the mortgage request.
Current employers may require proof of employment forms from previous employers to verify their work history and salary grade during service.
Every proof of employment letter requires three consecutive stages to be successful.
These stages involved are:
- Initiation of request by the third party.
- Request by the employee to their former or current employer.
- Writing of proof of employment letter by the employer.
Stage 1- Initiation of 3rd party request
A third party dictates the need for the proof of employment letter in the first place. The third-party agency starts the process of initiation by demanding the letter.
Stage 2- Request by employee to the employer
The employee requests the proof of employment letter from its current or previous employer based on the demanding third party involved. Most agencies will require that of a present employer. Fewer and more recruiting companies need letters from the employee’s former place of work.
Stage 3- Employer writing the letter
The present/ former employer of the individual seeking the letter writes the letter, providing necessary information about the employee to grant quick access to the request made. Offices prepare these letters beforehand in most cases. Employees may, however, write the letters themselves and may only need the signature of their bosses. The process of coming up with a proof of employment letter does not matter if a legit document is produced in the end.
Responding to Proof of Employment Request
Responding to this request as the employer is a simple task and does not require much hard work. Understanding the basis it requires is a necessary task.
To respond to the request, the employer needs to be armed with the following basic information:
Employer’s name and address
The important information of the employee’s organization, such as the company’s name and address, should come up at the topmost part of the letter, expressly detailed on a letterhead. A logo, if available, should appear at the letter-headed top. The proof of verification letter is concluded with the employer’s full name and signature.
The information of the employee as deciphered by the third-party organization is given.
The information divulged includes:
- The employee’s name.
- The type of employment and salary designed for employees in such positions.
- The reason for termination of employment is if the employee is a past employee.
- Signature of the employee.
Proof of Employment Letter Verification
Due to fraudulent activities done with these forms, every proof of employment letter must be accurate. As the recipient of the evidence of employment letter, the form’s legitimacy may be a hard nut to crack if verification is not the job the verifier is used to.
To figure out the precision of the letter, the verifier should:
- Expertly scrutinize the identity of the employer’s and company details status on the secretariat office from the address and name given.
- Call the previous/current employer to verify the authenticity of the employer’s existence. These calls should be done during business hours.
- Obtain the most recent bank statements of the employee to decode their financial abilities and expenditures.
- Get the tax returns and credit information of requesting individuals/ employees from the internal revenue service to confirm the person’s identity.
Getting Help – Sample Proof of Employment Letter
As an employee/person requesting a third party’s compliance, the income verification letter needs to maintain a perfect aura of expertise. Do you need help with how your sample income verification letter should go? The attached sample will help persons with issues draft a good sample letter. The good news is, it is customized for every employee to fit into every need of a third party.
A regular proof of employment letter contains:
- Company’s/employer’s name and address
- Date of writing
- The name and address of third-party demanding the verification form
- The employee’s information- the name, position, and description of the job, employment start and termination dates, the current/previous salary, and the reason for termination (if requesting, the third party is the prospective employer of the individual.
With this guide, proof of employment letter will look like this:
Proof of employment letter sample
Minnesota, XX 0000
January 10, YYYY
Minnesota, XX 0001
To Whom It May Concern,
This letter confirms the affiliation of [employee’s name] with[ employer’s name].
Employee Name:[ Employee’s name]
Employment dates: January 3, YYYY – May 11, YYYY (For the previous employee) or, January 3, YYYY –
Current (for present employee)
Job Position: Junior Resource Officer
Salary: $ 60,000 per annum.
For more information, contact us via 000-000-000, or [employer’s name] @ gmail.com.
Sample Letters & Examples
Proof of Employment Letter for Self-Employed Individuals
For owners of businesses, questions regarding drafting proof of income forms are usually asked since, as business managers, an employer is not available to prove their employment forms. For individuals in the self-employed category, proof of employment letter accompanying documents are submitted. These documents are slightly different from the normally submitted employment letters by employees.
- Bank statements
- Documents to prove tax returns are up to date.
- Internal revenue tax forms to report financial information. IRS form 1099 for diverse income, most frequently used by freelancers to register high-paying rendered services ($600 or more)
Suppose self-employed individuals offer temporary services such as freelancing, and third-party companies require proof of employment form. In that case, an Independent Contractor Agreement letter can be used instead and other vital documents that back the business’s legibility and owner.
Income Verification Letter Samples
Critical Writing Tips
Although writing a proof of employment letter is not a very challenging task, there are still a few guidelines that can help your letter become more proper.
Following are the tips for writing a proof of employment letter effectively:
- Follow the regular layout of writing a business letter: The standard rules guiding a business letter should be strictly followed. For example, a formal proof of employment letter requires the company’s address and name inscribed at the top boldly, the address and details of the receiving third party, a brief salutation to the recipient, and the employer’s signature to conclude. Deviating from the norm can be detrimental.
- Avoid giving unnecessary details: The employee’s personal information should not divulge except such information as requested. Unimportant information makes the letter lengthy.
- Provide all necessary information: Important information about the employee required to grant the request should be provided. Third-party organizations individually may have requirements slightly different from the regular. If the conditions are not highlighted, the standard format should be maintained to know helpful information about the employee.
- Keep it direct and as short as possible: These letters are usually between 50 and 100 words. An extensively detailed letter is a big no.
- Proofread and proofread again: Mistakes should be corrected, so an error-free letter is presented to requesting third parties. Errors left uncorrected can leave bad impression.
Frequently Asked Questions
An independent contractor agreement form with other accompanying documents such as the credit reports, bank statements, and others required explicitly by the third party can substitute the proof of employment letter.