There are many situations when you will be asked to prove how much money you make or earn, this case happens mostly when we apply for a loan. This can also occur when you are buying a car or a property. No matter what the reason is but if you need to give proof of your employment then here are six simple ways you can do this.
Pay Stubs are obvious proof of income or employment and with pay stubs, it is very easy to prove your employment. This is because it gives some important income details such as, the paycheck amount, the taxes that your employer retains, the total number of working hours, total wages, and the pay dates. The pay stubs precisely give an idea of how much money you earn. What if someone does not get pay stubs and is self-employed or works independently. Well, in case if you are self-employed then you can make use of software to make pay stub documents. Making your pay stubs when you are self-employed is a simple task and you can do it accurately by choosing the right application. This is something you should keep in mind if you are asked to prove employment.
Tax return and bank statements
The tax returns can be used to give an idea of the amount of money you made, this option is ideal for you if you are having multiple jobs. If someone wants to apply for a mortgage then this method can be used to prove income if you don’t have pay stubs. Bank statements give information about your deposits. You will have to list all your revenue for a year, and a tax return also gives an idea of income. You need to submit several tax returns if you are running a business for several years. This method however may not be useful to someone who wants recent proof of income. These documents should be prepared early and they are an effective method to prove your income whenever the need arises.
Making financial statements
If you are the owner of your company and self-employed then creating financial statements can help you out with this process. The best of all is creating an income statement. This gives an idea of the profit your business earned in a particular period and also shows the expenses of that period. These stamen scans are created each month or year. Suppose you create a monthly statement then you will have to enlist companies’ expenses for that month. After subtracting the revenues and the expenses, you can get an idea of your income for that month. Creating a spate financial statement for every month separately is more favorable. It is recommended to make many monthly statements because one statement cannot be used to prove a consistent income.
Employment verification letter
Providing an employment letter is another way to prove employment. The letter is a document created by an employer of the company letterhead and generally, it contains the name of the employee and the date of employment. If the person is still part of that company then the dates will state current, which means that he is still working in the company. In the case of self-employed people getting an employment verification letter is not always possible. If you run a company and five services to some large companies then you can ask them for the employment letters. The letters you get in this case are not the same as the employment verification letter but can still prove your employment.
1099 is a tax form that is sent to the businesses hired by different companies around the year. Take an example of a marketing company that hires graphic designers, it will send 1099 to each independent contractor that they paid in that year for providing services. This states some important things such as your name and address, your business number or social security number, and also the money a company paid you for providing services. So this one can be used as proof of employment also.
If you are having a traditional job then each year you will get a W-2 form from your employer while filing the taxes. The employees or the people who just typically filed on their own with the help of an electronic service will be able to log into their account and then retrieve the proper documents. From here onwards he can print it out or send it via electronic means to the other person or other parties. In case you are not able to access your W-2 statement then tell your employer and ask him to give you a copy of it. You can be asked any time to prove your employment in many cases so you should plan on time for this necessity.