A Verification of Employment (VOE) form is an official document used to confirm an individual’s current or past work history, job title, and income details. Its primary purpose is to verify the accuracy of information provided by an individual when applying for major financial or legal considerations. The VOE confirms employment stability and income, which helps reduce the risk of fraud in official applications.
Understanding the Verification of Employment Form
VOE forms are requested by third parties to officially confirm a person’s financial stability. Frequent requestors include mortgage lenders, banks reviewing loan applications, landlords determining housing eligibility, and government agencies assessing qualifications for benefits.
The forms used for this verification often adhere to standardized guidelines, especially in the financial sector. Mortgage lenders frequently utilize forms that follow the requirements set by major entities like Fannie Mae or Freddie Mac. These standardized documents ensure that all necessary information, such as employment dates and compensation breakdowns, is collected consistently. While some third parties accept a company-specific letter, the comprehensive VOE form is preferred for its detailed structure and official certification.
Determining Responsibility for Completion
Completing a Verification of Employment form is a shared responsibility between the employee and the employer’s representative. The employee initiates the request and must first provide consent for the release of their personal and financial data. Without this authorization, the employer is prohibited from disclosing sensitive details to the requesting third party.
The bulk of the data entry and certification is handled by the employer, usually an authorized representative within the Human Resources or Payroll department. This separation of duties ensures that sensitive details about employment status and wages are drawn directly from official company records. The employer ensures the employment and financial data is accurate and truthful before submission.
Filling Out the Employee Information Section
The employee’s part of the process involves providing identifying information and authorizing the release of data. This section requires the employee to confirm their full legal name, current address, and often a Social Security number or employee ID number. This information ensures the employer can correctly identify the individual in their records.
The employee must sign the form, authorizing the employer to release the requested confidential information. This signed release is a prerequisite for the employer to proceed with filling out the employment and financial details, protecting the employer against privacy concerns. The employee must also clearly indicate the name and address of the lender or agency requesting the completed form.
Providing Employment Details and Status
The employer’s section reports non-financial employment data, pulled directly from the company’s official records. This includes the employee’s start date, current job title, and a brief description of the position. These details confirm the employee’s role within the organization.
An accurate report of the employee’s current status is also required, specifying if they are actively employed, on a leave of absence, or if their employment has been terminated. For current employees, the form may ask for the probability of continued employment, with standard responses often including terms like “good” or “excellent.” If the individual is a former employee, the last day of employment must be recorded.
Accurately Reporting Compensation and Wages
Reporting financial data requires a detailed breakdown of the employee’s earnings over specified periods. The employer must list the current gross base pay, which is the income before any taxes or deductions. This base pay is specified by its pay period, such as an hourly rate, or an annual, monthly, or weekly salary.
Employers must report all other forms of compensation for the required time frame. This includes breaking out year-to-date gross earnings for categories such as overtime, commissions, tips, and bonuses. For mortgage applications, the form frequently requires gross earnings for the current year-to-date and the two prior full years to establish a history of income stability. If an employee’s work is seasonal or subject to planned layoffs, that information should be noted in the remarks section to explain any periods without income.
Certification and Submission Procedures
After all data fields have been completed, the form must be certified by an authorized representative of the employer. This involves the designated individual, typically from Human Resources or Payroll, providing their handwritten or electronic signature. The representative must also print their full name, job title, and the date the form was completed.
The employer’s contact information, including the company’s address, a direct phone number, and sometimes an email address, must be provided for follow-up verification by the requesting party. The final step is the submission of the completed document directly to the requesting lender or agency, not through the employee. This direct transmission, often via fax or encrypted email, is a standard security measure to prevent any unauthorized alteration of the data.
Key Legal and Confidentiality Considerations
The process of completing a VOE form operates under legal and confidentiality standards designed to protect employee privacy. Employers must obtain written consent from the employee before releasing sensitive information, especially details concerning salary or performance. This consent ensures the employer is compliant with privacy expectations when sharing a person’s financial and employment history.
Companies must only provide factual information that can be verified from official records, as providing false or misleading data can lead to legal consequences for the employer. Employees have the right to request a copy of the verification to ensure the information is accurate, and employers should maintain records of all verification requests and responses. Providing only the specifically requested data, and not extraneous information, helps mitigate the risk of privacy breaches or defamation claims.