How to Write a Salary Verification Letter (With Examples)

A salary verification letter is a formal letter written by an employer to confirm an employee’s job title, current or former salary, and other details about their position. These letters are often requested when applying for loans, leases or mortgages to verify income.

Writing a clear, professional verification letter is important to help your employee promptly obtain the financing they need. This comprehensive guide covers everything you need to know to write an effective salary verification letter.

When is a Salary Verification Letter Needed?

Common situations when salary verification letters are required include:

• Mortgage Applications – To confirm income for a home loan

• Apartment Rentals – To demonstrate ability to pay rent

• Car Loans – To show income supporting car loan payments

• Credit Card Applications – To prove eligibility for higher credit limits

• Background Checks – To validate employment history and income

Any lender or lessor wants to confirm your employee’s income can support repayment of debts. A verification letter provides that documentary proof.

What to Include in a Salary Verification Letter

A salary verification letter should be brief, formal and provide key details the requester needs.

Include the following information:

Header

• Date letter was written

• Company address and other contact info

• Addressed to specific person/company requesting verification

• State purpose of letter (verifying employment and income)

• Identify employee and their current job title

• Note how long they have worked for the company

Income Details

• Current base salary

• Any additional compensation like bonuses or commissions

• Brief description of variable comp calculation if applicable

• Confirm if income is salaried or hourly

• Amount and frequency of pay periods

Closing

• Offer to provide any additional info needed

• Thank requester for their time and consideration

• Signed by letter writer (usually HR rep or direct manager)

Now let’s see some templates and examples.

Salary Verification Letter Example

Here is an example salary verification letter:

Date

Acme Inc.
123 Main St
Anytown, CA 12345

RE: Salary Verification for Jane Doe

To Whom It May Concern:

I am writing to verify the employment and income of Jane Doe. Ms. Doe has been employed with Acme Inc. since January 2017 in the role of Sales Manager.

Her current base salary is $75,000 paid semi-monthly, equating to $150,000 annually. In addition to base salary, she earns approximately $20,000 per year in performance bonuses. Bonuses are calculated quarterly based on revenues generated by Ms. Doe’s sales team.

Regards,

John Smith
Human Resources Director
Acme Inc.

This provides all needed income verification details in a formal, business letter format. Follow this template modifying details for your own verification letters.

Tips for Writing Salary Verification Letters

Follow these tips when drafting salary verification letters:

• Use company letterhead if available

• Address letter to specific person requesting info

• Open with purpose of verifying employment and income

• Specify employee’s job title and time at company

• List exact base salary numbers

• Explain bonus or commission structures clearly

• Note if income is salaried vs hourly

• Mention frequency of pay periods

• Offer to provide any other details needed

• Thank requester for their consideration

• Have appropriate manager or HR sign letter

• Proofread carefully to avoid any errors

Writing complete, accurate verification letters promptly will help your employees get approved for financing and services.

What to Avoid in Salary Verification Letters

Conversely, here are some things to avoid when writing verification letters:

• Leaving out exact income amounts

• Vague, unclear language like “good annual income”

• Unofficial stationery or emails

• Misstating job titles, years at company, or other details

• Disclosing sensitive details irrelevant to income

• Grammar, spelling or factual errors

• Delaying requests – respond ASAP

Any lack of clarity or formality may raise red flags and jeopardize approvals. Stick to concise facts.

Salary Verification Letter Templates

To simplify writing letters, use and customize these salary verification letter templates:

1. General Income Verification Letter

Date

Company XYZ
123 Main St
Anytown, CA 12345

RE: Salary Verification for John Doe

To Whom It May Concern:

I am writing to provide employment verification for John Doe. Mr. Doe has worked for [Company] since [start date] in the role of [job title]. His current annual base salary is [$XXX,XXX] paid [frequency – weekly, bi-weekly, etc.].

[Add any bonus info, stock options or other variable compensation details. Use exact figures if possible.]

Please contact me directly at [phone] or [email] if I can provide any other details. I am happy to verify Mr. Doe’s employment and income. Thank you for your consideration.

Regards,
[Name and Title]
[Company name]

2. Mortgage Verification Letter

Date

New Bank Mortgage Dept.
123 Main St
Anytown, CA 12345

RE: Salary Verification for Jane Doe

Dear Sir or Madam:

I am the supervisor of Jane Doe and am authorized to verify her employment and income. Ms. Doe has worked for Acme Inc. since 2015 in the role of Sales Manager earning a current base salary of $75,000. She is paid semi-monthly, totaling $150,000 annually.

Regards,
John Smith
Human Resources Director
Acme Inc.

These editable templates cover all the basics. Modify for your own verification needs.

Sample Salary Verification Letter for Remote Employees

If you have remote employees, include a bit more detail in verification letters to confirm employment if you don’t see them regularly.

Date

To Whom it May Concern:

This letter is to confirm that John Doe has been employed remotely with [Company] as a Full Stack Developer since January 2020. Although we do not see him in our physical office, he works for us full-time on a contracted basis.

Regards,
[Name]
[Title]
[Company]

For remote staff, take care to explain the working arrangement and payment structure clearly. This reassures lenders that the employment is legitimate.

Can Salary Details be Disclosed Without Consent?

A common question is whether income details can be disclosed without an employee’s consent. In most cases:

• Basic employment verification is allowed without permission – you can confirm job titles, dates of employment etc. This is considered public information.

• Sharing exact compensation details normally requires an employee’s explicit approval, either through a release form or specific request via email/letter.

So while you can verify basic employment details, passing on granular income info or attached paystubs usually calls for consent. Always err on the side of caution if unsure.

Key Takeaways

Writing effective salary verification letters is an important skill for HR professionals and managers alike. The key takeaways include:

• Use company letterhead and formal business format

• Open with purpose of verifying income

• Provide precise base salary amounts

• Explain bonus structures clearly

• Note salaried vs hourly and pay frequency

• Verify other key details like job title and tenure

• Proofread meticulously to avoid any errors

• Respond promptly to time-sensitive requests

• Obtain employee consent before disclosing income specifics

With practice, you can master professional verification letter writing. Well-written letters help employees secure financing while minimizing fraud risks for lenders. Just be sure to get employee approval first if sharing detailed pay information.