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Employment (Income) Verification Letter

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The employment verification letter is a form that verifies the wage or salary earned by an employed individual. This type of verification letter is commonly used when someone seeks housing or is applying for a mortgage. The requester of the employment (income) information will use the form to confirm that an individual has a secure job and an income stream capable of affording the monthly payment.

Items to be verified:

  • Current Employer
  • Occupation/Title
  • Employment Start Date
  • Pay ($)
  • Status (Part-time/Full-time)

How to Verify

Do you have an employment verification letter but not exactly sure it is legitimate? If so, follow the steps below in order to figure out if in fact the income submitted by an applicant is accurate or not.

Step 1 – Lookup the Business Entity

Every State has a Secretary of State’s office or equivalent that allows a user to search its database to lookup the principals of the business entity. Have the individual you’ve requested to obtain an employment verification letter from the Principal or Owner of the business.

Check Business Entity Status – By State

After you’ve received the letter you can check online to see if the person that signed the letter matches with the company profile with the State.

Step 2 – Call the Employer

In order to ensure that the employer actually signed the letter, it is best to call during business hours. If the person that signed is not available it is best to ask for a call-back or to ask for someone else who may be able to verify furthermore of the verification.

Step 3 – Obtain Past Pay Stubs / Bank Statements

When asking for the letter it may be best to ask for the past 2 pay stubs from the employer. If this is not available then it is best to request the bank statement of the past month from the individual. This will give you not only their income but also show their spending habits and prove if they are capable of being financially responsible.

Step 4 – Obtain Past 2-Years of Tax Returns

Often times individuals are paid with cash or they are self-employed. In these instances, it is best to get, at the very least, the past 2 years of income taxes. Everyone in the United States is required to pay taxes to the federal government. Therefore, if the individual is making any kind of money there will be a return on file that they can easily obtain.

For Individuals – Request IRS Form W-2

*Self-Employed – Request IRS Form 1040

*The requester may also ask for the individual to submit IRS Form 4506-T which asks the federal government to verify the self-employed individual’s income from the previous year. This takes about 1 business day and is free.

Step 5 – Obtain a Credit Report

If none of the above solutions seem promising it is best to obtain a credit report from the individual. This can be easily completed by either collecting the person’s information through the Background Check Authorization Form. Once you have all the necessary information you can perform the lookup through Equifax, Experian, or Transunion.

How to Write

Step 1 – Start by downloading the form in Adobe PDF, Microsoft Word (.docx), or Open Document Text (.odt).

Step 2 – In the first section of the form (shown below), the employer must specify their personal information by entering the following:

  • Name
  • Street address
  • City
  • State
  • Zip

Step 3 – Next, the employer must enter the name of the employee in the first entry field, and once again in the second field. In the remaining two (2) spaces, the employer must enter the name of the business as well as the date when the employee commenced his/her employment.

Step 4 – This section of the form asks the employer to specify the following details:

  • Name of employee
  • Title of employee
  • Type of employment (full-time or part-time)
  • Hours worked per week
  • Wage
  • Payment frequency
  • Whether or not a bonus was given (if a bonus, enter the amount)
  • Phone number

Step 5 – Lastly, the employer must provide his/her signature, printed name, and describe their business title.


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