Month: June 2022

Sometimes it is not clear what documents are needed to verify an employee. And, therefore, today we will discuss a list of 6 relevant employment and income verification documents that comply with local law. This will make it easier for the employee and the employer to clarify which documents need to be onboarded and verified.

What are Employment Verification Forms?

Employment Verification is needed when a company hires a new candidate and when a lender wants to evaluate an applicant for a new loan. The employment verification helps to make sure that the employee the company is going to hire has held a position in the previous company. This employment verification also helps to sneak a sneak peek into the employee’s responsibility and experience in the previous company.

What is Form I-9?

This document is eligible for each new employee to work in the U.S. Primarily completed by the employer, and this form is mandatory for all the new employees. Form I-9 collects all the documents that are necessary to know an employee’s identity and work state. In the first part of Form I-9, the employees fill their personal information like social security number, name, and address.

And, this form also includes the employer’s proof of an employee’s work eligibility, which is the most important part of Form I-9. There are three categories of documents that need to be completed in Form I-9:

1. Proof of employment eligibility and identity: This document includes U.S. Passport or Passport Card. Permanent Resident Card or Alien Registration, Foreign Passport with Endorsement to Work via Form I-94 or I-551, and Employment Authorization Document Card.
2. Proof of identity only (must be combined with a document from List C): Current U.S. Driver’s License, Federal, State, or Local ID Card, U.S. Military Card or Draft Record, School ID Card with Photograph, U.S. Coast Guard’s Merchant Mariner Document (MMD), Military Dependent’s ID Card, Canadian Driver’s License, Native American Tribal Document, and Voter Registration Card.
3. Proof of employment eligibility only (must be combined with a document from List B): U.S. Social Security Account Number Card, Certification of Report of Birth by the U.S. Department of State, U.S. Citizen ID Card, Native American Tribal Document, Consular Report of Birth Abroad, and Identification Card for the use of Residents of the U.S.

Let’s understand the Employment Authorization Document issued by the Department of Homeland Security:

The employers must maintain a copy of Form I-9 (completed by employees) three years after the hire date. There are serious penalties and imprisonment for any non-compliance and disclosure.

What is an Employment Verification Letter? 

The Employment verification letter is an Employment Verification documents issued by a new employer that works as proof that the new employee has held a role that they’re claiming to have held. The Employment verification letter is also known as the Proof of Employment.

Employment verification letters can be different in content and format, but this letter mostly helps center the dates of employment, employee responsibility, and employee’s job title. 

Additional information to complete the letter are:

1. The name and address of the firm requesting the verification letter.
2. A stand company letterhead or employer business address and name.
3. The form also includes the job title of the former or current employee.
4. The joining date of former and current staff members.
5. Include the salaries and bonuses of former and current employees. 
6. Lists of the employee’s responsibilities.
7. Employee’s signature, contact information, and name to make it easier for the recipient to contact the employee.

What is an Unemployment Verification Form? 

Suppose an employee is out of his job or terminated from the firm, with no valid explanation. Then, the employee can apply for the support of the State’s Unemployment Insurance. 

The Unemployment Verification Form may differ in each state, but the employees fill them out. 

And, when you are filling out the Unemployment Verification form, this form includes a section that mentions the employee’s total earnings and reason for termination. 

Therefore, the employers can explain whether the employee’s claims are relevant. 

What are Income Verification Documents? 

If an employee is looking for a new line of credit involved in property-lease negotiations and loan organisation, this demands a verified source of the employee’s total earnings. Therefore, you need income verification documents.

What is a State-specific income verification form? 

Most states have their forms for employment and income verification. In some states, the employer confirms an employee’s earning information with the help of Form H1028. This form is used when an employee cannot provide information related to their earnings. 

What is a Loss of Income Form? 

In Florida, they use Form CS ES 2620. This form helps to document the loss of income. Sometimes, an employee may require verifying proof of income loss related to the current or former job, and in such cases, loss of income forms are useful.

What is Paystub? 

In some cases, Paystub can be used as proof of employee earnings. However, the chances of this document being fake are high, and therefore the employer may demand a more trustable form (State-specific forms) like Form H1028. 

Why is it important to complete an Employment or Income Verification Document?

Both employee and employer must keep all the essential documents. This is an essential part of securing documents related to Income and Employment Verification. 

If there is any false disclosure, then the guilty person needs to face imprisonment and penalties.