What are some uses for an income verification letter?


Quick Answer

An income verification letter validates an employee’s financial situation. It is usually written by an employer and states an employee’s work information, including designation and compensation. Lending companies usually request the letter to gauge the financial capability of an employee who is requesting a loan or making a major purchase.

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Full Answer

Potential employers normally ask for the letter as evidence that an employee works for the company he claims and that the employer is willing to verify the information provided.

Government agencies ask for income verification from applicants of federal benefits, such as unemployment or Medicaid applications, to prove that they meet certain income requirements.

Important information conveyed in the letter includes the name and address of the employer, the employee’s name and designation, his compensation, and the start and end date of hire.

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