A Proof of Income Letter verifies an employee’s income and employment status. It’s often required by landlords, lenders, government agencies, and other institutions to confirm that a person has a stable income source. 

Evidence of income from an employer verifies salary and proves that someone can fulfill critical financial obligations. Besides proving income and employment status, it verifies specific details like job title, employment length, and work hours (i.e., full-time or part-time).

A Proof of Income Letter is also known as a:

• Salary verification letter
• Income verification letter
• Source of income letter
• Letter of employment
• Employment verification letter

Employees may need a Proof of Income Letter for situations and applications with significant financial requirements, including the following:

Mortgage or loan applications

Lenders usually require evidence that an applicant has the means to repay them when applying for a loan (e.g., a mortgage). Often, evidence is provided in the form of a Proof of Income Letter.

In addition to a letter, lenders may request pay stubs, bank statements, and more. Though lenders may request an employer to send a letter on an employee’s behalf, they must have authorization from the employee (i.e., applicant).

Suppose you’re trying to secure a loan to start a small business. If you’re currently employed, a potential lender may request that your employer provide a Proof of Income Letter. The letter can prove you have a consistent income that can support loan repayments until the business starts growing.

Lenders must comply with all privacy requirements under relevant state-specific financial privacy laws and the Consumer Financial Protection Bureau. These regulations include providing privacy policies to borrowers and rules on using personal information they gather for applications. 

Lease or rental applications

Landlords may request a Proof of Income Letter during a tenant’s screening when they apply to lease a property, such as an apartment or house. They request these details to confirm that applicants have an income that will reliably cover the rent.

Landlords must follow all federal and state regulations when processing a rental application. (e.g., the Fair Housing Act and the Fair Credit Reporting Act). A landlord can choose a tenant based on income and credit score. However, they must also follow all safe screening practices and anti-discrimination laws.

Immigration or visa applications

U.S. Citizenship and Immigration Services (USCIS) require proof of income for anyone looking to become a resident or bring family members into the country. 

Non-resident employees may need to provide proof of employment in situations such as applying for a green card, sponsorship, work visa, and more. A Proof of Income Letter can assist in providing evidence of their current or future employment.

Additionally, citizens looking to petition for a family member or spouse’s green card must provide financial evidence to USCIS that they have the income to sponsor and support family coming into the country. Applicants may include a Proof of Income Letter alongside other applicable documents such as income tax returns, pay stubs, or W-2s.

If you require further assistance with immigration matters, please contact an attorney. 

Other purposes for a Proof of Income Letter

Employees may need a Proof of Income Letter for other instances requiring proof of financial stability or income, including:

• Purchasing an insurance plan
• Applying for a credit card
• Navigating a legal dispute (e.g., workers’ compensation claim or spousal or child support cases)

Additionally, some employers may request proof of income to verify an applicant's salary history and expectations in the hiring process. However, some states have regulations that make seeking or asking for salary history unlawful. For example, the California Labor Code states that employers cannot rely on salary history to determine an applicant's offer and salary for a position.

Some local laws also prohibit the use of salary history in determining a candidate. For example, New York City Administrative Code § 8-107-25 considers it discriminatory to inquire about an applicant's current or previous salary.

Job candidates and employers should check local and state laws before submitting or requesting proof of income.

A Proof of Income Letter must include clear details about an employee and their employer. With LawDepot’s template, you’ll include this important information by completing the following steps:

1. Add employer and employee names

As the employer, start by providing your name. Then, provide the name of the employee for whom the Proof of Income Letter is being requested.

2. Provide the employee’s work details

Next, include the employee’s work details. These are based on the kind of Employment Contract and position they hold at the company. This includes:

• Employee’s current job title
• Employment length or period
• Work hours (e.g., full-time, part-time, any specific contracted hours)
• Compensation, including bonuses, commissions, or additional compensation

If you can’t remember the employee’s start date, you can fill in the employment period later.

3. Add recipient details

Continue by specifying who is receiving the Proof of Income Letter. This can include their name, company name, and address. If you don’t know the recipient’s name, the template will use "To Whom It May Concern" as its greeting or salutation.

If the recipient is an employee’s new or prospective employer, check with local and state laws that may restrict employers looking to request salary history. 

For example, Nevada’s Revised Statute Chapter 613, also known as Employment Practices, outlines rules for employers. One restriction in Nevada is that it prohibits employers from seeking an applicant's wage or salary history. 

4. Provide employer details

As the employer, add your contact details. You should have easy access to employee records if the letter recipient needs to contact you for further verification or details.

You may also choose to print your letter on the company letterhead providing all of the company’s details. Otherwise, finish by adding the rest of your information (e.g., business address, website, etc.).

Generally, an employer writes and signs a Proof of Income Letter. However, an employee may draft the letter in preparation for their employer to review and complete it with a signature.

An employer must have authorization from an employee to disclose any information if they are approached directly by recipients like a lender or landlord.

Employees seeking a letter from a current or former employer can contact managers or human resources to complete their request. To help their employer, employees should include the recipient’s details and how the letter is to be delivered.

If you’re self-employed or a freelancer, situations like applying for a mortgage or lease will likely still require proof of income. Some lenders, landlords, and organizations may specify what kind of evidence to supply if you’re self-employed.

Examples of documents to validate your income can include a transcript of your tax returns or a formal statement by a certified public accountant, called attestation.

In some circumstances, an Employment Offer Letter may qualify as proof of income. Whether an Offer Letter is permissible depends on:

• If the letter includes a salary
• If the party requesting proof of income will accept it as evidence

For example, some landlords may accept an Offer Letter as proof of income for applicants relocating for a new job. However, not all Offer Letters include an income or salary. So, if your offer doesn’t have these details, it won’t count as proof of income. 

On the other hand, if an employee has an Offer Letter from months or years before they need to provide evidence of income, they may have received an increased salary since they started their position. So, a Proof of Income Letter may be a better choice to allow an employee to provide the most up-to-date information.

It isn’t a requirement to have a Proof of Income Letter notarized. However, there’s nothing stopping an employer from notarizing a letter to validate the document and their signature further. Notarization can help the recipient verify the letter’s authenticity.

If an employer wants to notarize their Proof of Income Letter, LawDepot offers Online Notary services to notarize your documents securely and easily from home.