Salary verification letters are usually created when an individual (the employee) applies for a loan or financing request to purchase a product. These are commonly prepared by an HR personnel, manager or sometimes the employee himself. Since it contains details that are critical for the employee’s application, it could be challenging for anybody to prepare one. Hence, in this article, we are going to talk about the basics in writing these documents and help you write compelling outputs. Read through to learn more.
A salary verification letter is a piece of document that verifies the employee’s salary in the company or organization he is currently working in. The institution or organization selling the product ask for a salary verification letter, among other documents, and the said letter is then created by the employee’s immediate supervisor/manager, or any human resource personnel. To give you a clear illustration of these documents, here are the best samples we collected for you.
If you are the employer and an employee asks for a salary verification letter, it is your responsibility to check if the employee is really earning the correct amount and is receiving the same amount on a weekly or bimonthly basis. Salary verification letters are usually requested by the company if a person purchases a product with them.
A delicate process is needed when it comes to salary verification. So, make sure to follow these tips when doing a salary verification.
Not all companies have the same individuals or department who computes the payroll of their employees. Some companies task the finance or accounting department to conduct the payroll duties, others the human resource department, others have their own payroll department, while others outsource their payroll to a third party.
If you are the person tasked to create the salary verification letter, check who is/are the persons responsible for calculating and listing down the employees’ salaries or wages. If you are making the payroll yourself, then it will be much easier to make the salary verification letter since there is no need to check with other people.
The easiest way to create a salary verification letter is to check with the employee and ask him directly regarding his salary. Although you need to be careful as the employee might tell you he is earning more, or if the meeting provides an opportunity for him to request an increase in his salary. If you do decide to talk with the employee, make sure you have a copy of his most recent pay slip or pay stub. You may also see employment verification letter examples.
If you are making the salary verification letter, be careful of past discrepancies in regards to the employee’s salary. There might be changes that may have caused the employee’s salary to increase or decrease that was not recorded in the employee’s financial records (or the employee’s pay slip). Make sure to indicate discrepancies in the salary verification letter. You may also like verification of employment letter examples.
This is related to the previous tip where you need to be mindful of previous discrepancies in the employee’s salary. If there is a recent increase or decrease, indicate the change in the salary verification letter. If there is a plan for the employee’s salary to change in the near future, it will be your discretion if you plan to incorporate it in the letter. But it is better to omit that information first that the change is actually reflected in the employee’s pay slip.
Creating a salary verification letter is not that difficult. All you need to do is input the correct details and you’re all set. Listed below are some tips on how to create a salary verification letter.
Without the employee’s salary being listed, then the salary verification letter would be useless. Take note to enter the salary details before anything else.
As previously mentioned, check the salary details before writing the actual amount in your formal letter. Writing the wrong salary will land your employee in hot water especially when he will be applying for a loan from a bank or other financial institution.
Similar to a medical certificate or a certificate of employment (COE), the purpose of why that document is made should be specified in the letter. For example, an individual requests a certificate of employment for the purpose of applying for a travel visa. That said purpose should be listed in the certificate of employment. The same goes for a salary verification letter.
Since a salary verification letter is written mostly for the purpose of verification purposes, be careful with writing the details in the professional letter. Your employee will be very appreciative if you input the correct details in the salary verification letter.
The salary verification letter will be incomplete if other company details are omitted. Some of the details you should add are the full name of the employee, his or her designation or position in the company, his start date (the exact date when he started working for the company), and the company contact details (phone number, email address, office address). You may also see a letter of verification examples.
Adding the mentioned details will ease the verification process, especially when the employee is applying for a loan.
An income verification letter or also known as employment verification letter is a legal paper that confirms the salary income of an employee in his/her current or previous company. This document is normally printed on an institution’s official stationery or letterhead.
This verification letter is commonly provided in response to the request of a bank or other financial institutions as a requirement in the application for a credit card, loan, bank accounts, etc. Letters for income verification are asked because they validate that an applicant currently has a secured job that is capable of supporting the borrower in paying every month. These documents are also needed in applying for insurance.
Furthermore, income verification letter can also be asked by hiring agencies to acquire reliable information about the prior employment of a candidate. These are also requested by some resigning employees to include in their job application.
The only place you can ask for an income verification letter is your company itself. However, the author of this letter differs based on your company’s policy. It is the HR representative that composes the document in some cases while others utilize a template that the supervisor could use. Other institutions provide their employees with form/s to supply or let their requesting workers write a permission letter before they could send the employee’s data to the respective organization. Nevertheless, no matter what policy is being implemented in your company, it is always important to request one as soon as possible. Here are some specific types of scenarios in requesting an income verification letter:
As an employee, it is already the norm to be professional in all procedures that relate to your career. Hence, think critically in processing your income verification letter. Direct your request to the HR department first if your company have one since they are the one responsible and knowledgeable for matters like these. Typically, they are the ones who will prepare the letter or provide you a form or template to fill up which will also be the reference of your manager. However, if there is no existing HR department in your company, talk about it with your manager.
Assuming that you are a prospective lender and want to check whether a person has the capability to pay as agreed for credit or due to other reasons outside work, requesting an income verification letter could make it easy for you. Nevertheless, in making your request, keep it concise and professional. It is the name, title, salary, and dates of employment that are commonly needed details to be requested.
As mentioned earlier, an income verification letter can either be provided by the company for you or not. Hence, whether you are a manager or an employee, it is important to know how to write one. To help you with that, simply conform to these steps to obtain a professional output of yours:
Let’s say that you are the manager of your company; however, you are unfamiliar with writing documents like income verification letters, let this section guide you.
Specifically, if you are dealing with a resigning employee, you need to be extra critical and rational in composing one. Considering that the employment of your previous worker could depend on your statements, you must be careful in every detail that you should include. Do not make stories to damage the reputation of a leaving employee as well as not overselling him/her to the requesting party. Moreover, if the verification letter is intended for non-employment reasons, recall that there could be significant issues that you should consider such as loans, mortgages, etc. This may be burdensome for you but as a manager, you must take it seriously. Nevertheless, you can always ask help from the HR department to check on the letter verification process.
In some cases, a company could let their employees write their own income verification letters and let their HR department or manager affirm the document with their respective signature. If it happens that you fall under companies like these, there is nothing to be worried about because, with these guidelines, you can compose your own professionally.
For resigning employees, your employers would probably be the one who is going to prepare the document for you. In some cases, they could let you write a draft first and submit it to them. Nevertheless, if you happened to experience such, the guidelines are still as helpful as it is.
Assuming that you want to loan for your child’s college, there would be a very high chance that a lender will ask you for some proof of income. But, what are proof of income? These are the document or set of documents that are requested by a lender or landlord for them to have a reference that you are capable of paying the necessary bills. Overall, the basic pieces of information that are needed include:
On the other hand, the frequently requested proof of income documents include:
We hope you found this article to be informative as well as helpful when you will be creating your own salary verification letter. These types of letters are helpful when an individual applies for a loan or wants to purchase a product through financing. To help you write your own salary verification letter, we included some examples (in PDF format) as well as tips. You may also see income verification letter examples.