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. Salary verification letters are usually created when an individual (the employee) applies for a loan or financing request to purchase a product.
The institution or organization selling the product asks 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.
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 were 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 letter of verification examples.
Adding the mentioned details will ease the verification process, especially when the employee is applying for a loan.
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.