The wages of employees are identified legally with a wage verification form. CocoSign allows you to create legally-binding wage verification forms in minutes using pre-formatted templates.
What Is a Wage Verification Form & How Does It Work?
A wage verification form is a legal document which can be issued by a concerned party to the employer requesting the wage details offered to a particular employee. The requests can be made by either government agencies or private entities.
This form is a de-facto for gathering accurate information on someone’s income from a particular employer legally. Any other form of request is either not entertained or provided with inaccurate information. And there’s no way you can hold anyone liable for it.
Wage verification starts with someone who wants to know a person’s wage from a particular employer. The employer can be either his/her present employer or past. This can be for a variety of reasons (we’ve mentioned some common scenarios in the section below).
To get the details, they’re required to create the wage verification form that complies with their respective state law. Once prepared, the wage verification form will be sent over to the employer via mail or e-mail. If satisfied with the formatting and request, the employer may respond with the wage details.
Why Is The Wage Verification Form Important?
An income verification form is a legal form. That means it holds great importance. First of all, such a verification form is important because that’s the only legal way you can obtain the wage details of a person. Most employers shy away from disclosing their wage history to non-concerning parties. But with this form as a request, they’d have to disclose the correct information to remain compliant with the regulation.
Also, you can ensure that the wages presented on the form are accurate. Providing wrong numbers would definitely lead the employer into problems.
Not only the proof of income form, but the content and field are equally important. Some of the fields you must include are:
- Employee’s formal name
- Employer’s address
- Date of Employment
- Wage as Salary
- Other Supplement Income
- Working days per week
- Paid Leaves
CocoSign provides ready-to-use wage verification form templates that contain all the necessary fields.
When Is a Wage Verification Form Used?
A wage form is used in different scenarios. Some of the most common ones are:
Requests made by tax departments
Tax departments often have to keep a tab on someone’s income sources in case of legal suspicion. Therefore, they send letters to his/her respective employers along with the wage verification form to get the wage details.
Often, they have their own forms provided by the form. But this is perhaps the best example of where a wage verification form is used the most.
During the hiring process
When you onboard a new employee, you often have to negotiate his salaries, which is typically higher than what he was paid at their previous company. While the employee may reveal the figures himself, it might not be exact. Therefore, to get the exact figures, you send a wage verification request form to his former employer. This way, you can negotiate better with a new employee.
When seeking health and disability information
Employers also protect their employees’ health information and keep it confidential. To access this information, you can send in the wage verification form along with the employment verification form. By correlating both, you’ll be able to conclude how their former employer treated their health concerns. Health insurance companies also use these forms to get data.
CocoSign offers dozens of pre-defined wage verification of income form templates you can download and use for your own organization. These are compliant with local laws and are easy to use.
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