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An Employment Verification Letter is a document provided by the employer confirming the employee's current employment status and income.
A potential employer may, for example, request an employment verification letter from an employee's current employer to confirm that the employee had worked for the employer at the salary indicated in their application and/or CV.
Landlords may also request a pre-rental employment verification letter to verify that the tenant is creditworthy.
Sometimes, lenders need to verify the employee's employment when applying for a mortgage, line of credit, lease or loan. This information is necessary to verify that the applicant is earning enough income to make the monthly payments without experiencing financial hardship. They may also use this information to decide on the loan amount.
How to use this document?
This letter includes basic information regarding the employee's time with the company. The letter includes important details such as the employee's position and how long they have worked with the company. The letter then goes on to detail the employee's yearly salary as well as any additional monetary compensation they may receive, such as bonuses or commission. It may be a good idea to verify with the lender/employer/landlord to see if they have any special requirements. However, the document should at least provide the following information:
Once the letter has been completed, it is important to make sure the letter is properly dated and signed and then sent to the recipient. The employee may also keep additional copies of the document for their records and for future use.
There is no specific law that applies to this type of document. Rather, it is information that lenders/employers/landlords will require for verification purposes. The information can be found in the letter or contract of employment, T4, or pay stub. Some lenders/employers/landlords simply prefer to call or email the employer or give the employee a form to fill out and sign.
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