An employer uses a proof of income letter to verify an employee’s payment history and employment details (previous or current). In many cases, a proof of income letter is written as a backing to support loans or mortgage payments from a financial institution, house rent verification, and government agencies.
The letter details where an employee works, salary, the post held, income regularity, and income source. This helps businesses verify prospective applicants’ identity and their ability to handle the position of interest.
In other situations, a proof of income letter can be used by a current employer and a landlord to do a background check on a tenant or new employee. It helps them build trust for security purposes.
Proof of income letter can also be called an employment verification letter, proof of employment letter, employment confirmation letter, salary verification letter, and work verification letter.
Who Can Request It And Why?
A proof of Income letter request provides security to the requestor. It helps them analyze the person’s personality they want to deal with in different situations.
The letter may be requested by the following:
Potential applicants often lie about their job description, place of work, and income. Therefore, a proof of income letter helps the new employer determine the claim’s authenticity. It provides both parties with maximum security.
A landlord can determine the ability of a prospective tenant to maintain a housing application. With proof of income letter, it is easy to confirm if the income of prospective tenants matches the rent service charges of the house under consideration. Thus, it saves many landlords from dubious tenants.
A lender or a financial institution should request proof of income from the borrower to determine the genuineness of the payment source, their credibility, and financial performance. It is significant to verify every piece of information before funds are released to borrowers.
Salary Verification Letter Examples
Here are a few examples that help you understand the tone of the letter:
How to Write a Perfect Proof of Income Letter
Letters of this nature should be written formally. It should follow all the formal letter writing conventions, avoiding familiarization and a less business-like approach. The format of the proof of income letter is provided below:
The date is one of the essential features of a verification letter. The letter has to carry a specific date on which the letter is written. The date can be written on the appropriate section of the letter-headed paper.
The verifier’s person must be included in the letter to provide a form of identity for the inquirer. The details also help the inquirer know the individual who represents the company.
It usually includes the verifier’s company identity (name), address, city, state, zip code, phone number, and email address. These details are necessary to show an inquirer that the income verification letter comes from an authentic source.
Next in the letter should be the party’s name requesting the letter of employment. It should be written atop the body of the email but beneath the address section of the letter-headed paper. It should contain the address and role of the person being addressed as it helps to personalize the letter.
Writing the body of the letter requires the following details that are necessary to determine an employee’s employment status:
Name of employee
The employee’s name must be included in the letter’s body and the other employment details. When writing an email, the employee’s name can be inserted in the body of the email. It should be written in the first entry field, while it must be mentioned in the second field. The first section is the subject line of the email.
Title of employee
This aspect details the description of the employee’s job details. This includes his duties and level on the work cadre.
Branch Manager at KFC, Colorado.
Supervision and Maintenance.
Employment details reveal all pieces of information about an individual’s work history. It details the employment type, job description, total number of commitments to the job, employment type, and job expiration.
He works a full-time shift in this position and runs 8-hours per day, Mondays through Friday. His contract will expire on the 21st of June, 2050.
Type of employment
Details of the duties of the individual involve a full-time or part-time commitment.
Employment start date
This part of the proof of income letter should come after the job description narration. It helps the verifier determine the security of the job the person holds at the organization.
Employment start date: December 1st, 2020.
Hours worked per week
It is determined by the employment type the person holds at the institution. This could be full-time or part-time employment.
8-hours per week, Monday through Friday
It is necessary to help the inquirer decide if the person is worthy of the obligation. This can be paid hourly, daily, weekly, bi-weekly, monthly, quarterly, and annually.
Details when the salary is paid A regular payment frequency would be a good fit when writing a proof of income letter.
His salary plan takes off on Monday of every week, and he is paid $35 per hour.
Depends on if the company pays bonuses as a separate financial reward. If the company doesn’t pay its staff any bonus, then there is no need to include bonuses in the letter.
Bonuses include maternity leave, health insurance, thirteenth month, and annual leave bonuses.
Employment end date
This is particularly good for contract workers. Contract works always have a marked end date for each job description. Because of this, the end date should be included in the proof of income letter for a contract worker.
You should include your signatures at the end of the letter to attest to the validity of every piece of information that you have provided in the letter.
Supervision and Maintenance
ABC Food Company,
5000 Road, Washington Avenue
New York, NY, 10092
April 25, 2022
Food menu Inc,
William Roosevelt Drive,
New York, NY, 20018
Dear Mr. Wood,
This letter details the employment and income of Mr. John Doe. He is an employee of ABC Food Company and holds the position of General Supervisor. His employment was confirmed on the 15th of June, 2000, as one of the entry-level graduate positions. He works at our branch located at 5000 Road, Washington Avenue, New York, NY. He currently earns an annual salary of $100,000 and an additional bonus of $10,000 for the execution of each milestone.
The attached documents are endorsed as proof of income, wage and tax statement (W-2), and Paystubs. All information provided is correct to the best of our knowledge.
For further clarification and questions regarding the information provided in the letter, do not hesitate to contact us at 791-518-7118 or [email protected]
Frequently Asked Questions
A current or past employer writes proof of income letters to confirm an employee’s or former employee’s work claims. The request can come from a government agency, private entity, prospective landlords, mortgage lenders, collection agencies, or employers to establish employment claims and salary streams.
Yes. In many cases, the salary is the ultimate decider to confirm a person’s claim to a position of interest. It should include an employee’s hire date, position within the company, and current wage or salary. For former employees, it should explain the reason for termination (voluntary or involuntary) and the job end date.
The government, mortgage provider, prospective landlord, prospective employer, or collection agency requires an employment verification letter. It is an avenue to establish the truth of an individual’s job history, salary or wage scale, and worthiness of their interest.