Example of Salary Verification
Your signature on an employment application or a background check authorization form gives prospective employers the right to dig into your work history, ask previous employers whether you're eligible to be rehired and seek comments about your performance, according to The Law Dictionary. But some of the most useful information a prospective employer obtains has to do with your previous earnings. What you earned in previous jobs often determines what you'll make in your new job.
Some recruiters or hiring managers want to verify your previous salary. Year-end bonuses and incentives shed light on your performance and level of engagement. But when a prospective employer calls to verify your earnings, salary-only information generally is enough to help that employer structure a salary offer for your new job. In this case, you may have already provided your salary and work history, and the recruiter merely contacts previous employers to verify that the information you provided is truthful.
IRS Earnings Verification
It's a time-consuming and seemingly invasive way to verify past earnings, but some employers require that you prove your earnings by sharing tax returns or copies of your IRS Forms W-2 from previous employers. For many candidates in the final stage of the hiring process, this type of verification exposes far too much personal information than is necessary to verify salary or prove that the candidate is worthy of being paid a particular salary at her new job.
If a prospective employer asks you to sign an authorization for release of your tax return transcripts or filing, always ask if there's another way to prove past earnings.
If you're being considered for a job where incentives, bonuses and commissions reflect your level of effort or performance, it's critical that prospective employers verify your total earnings. For example, if the accomplishments on your resume indicate that you regularly exceed revenue goals through consultative sales techniques, you can substantiate those statements through having the recruiter verify how your previous employer compensated you through incentives, bonuses and commissions above your regular salary. Verifying just your salary won't accurately reflect your overall job performance and success.
Verify what your previous employers will say when prospective employers call for employment and salary verification. Contact companies you previously worked for to confirm that you have accurate recollection of your earnings so that when you embark upon a job search, you're providing an accurate representation of your work history. Also, employment verification companies offer their services to employees, too, according to Truework. Your stored earnings information and proof of salary payment is easily accessible and useful when you're looking for another job where you must prove your past earnings.