Paystubs can be verified. When paystubs are used as proof of income and/or submitted with an application. It would reason that the recipient of this information has a method or system in place to verify the information that has been provided.
They do this to protect themselves and lower their default rates. When you look at it from the side of the recipient. Having a system in place to verify the applicant's ability to repay is a rather standard business practice. It’s called Verification of Employment or VOE for short.
The systems they have in place to facilitate VOE rely heavily on person-to-person contact and are supplemented with databases. Often the company sends the application to a verification service, which assigns the application to a specialist. This specialist's job is to follow the paper trail to verify the information provided and ultimately the paystub.
How does the verification process work?
The specialist will start by researching the company listed on the paystub. They will check common directories and business listings to gather information on how long the business has been around, ownership, reported income, suppliers, customers, and other useful facts. They will also use special databases that provide them with reports on the business activity and public filings the business may have made.
Once the specialist has gathered the basic information about the company listed they will then reach out using the phone numbers they found during research. The specialist places a call, with the intent of first verifying the business is real ie answering service, directory, or secretary.
Then they are looking to speak with the person who handles human resources. Human resources managers are usually limited to the information they can provide. In fact, in certain states, they are required to have written authorization from the employee to respond to verification of employment requests.
HR managers know that employees submit paystubs to landlords, car dealerships etc, and usually try to respond to requests in a timely manner. In this case the person responsible for handling VOE requests may only confirm or deny what the specialist asks in lieu of giving actual figures.
Read: How long to keep your paystubs
Red Flags
Very often the specialist are able to sniff out fake paystubs and fraud by comparing the information they found versus the information listed on the paystub.
This may seem simple but it’s common for them to flag a paystub over the spelling of the company’s name. During their research, they locate the company’s original filing documents. These filings represent the legal spelling of the company’s name. When they review a paystub and it has the shorthand spelling of the company’s name it’s an immediate red flag.
The same flag is raised when the address on the paystub is not the full address, only the street and zip.
Other red flags are zeros and letters O’s that are shaped the same. Unrealistic hourly pay figures for the position, even numbers, the list goes on and on. The specialist is usually well-trained to catch the tell-tell signs of fake paystubs.
As you can tell from this process, it’s not common for your actual pay stub to be verified. Although there is nothing stopping the specialist from emailing the actual paystub for a confirmation from the person responsible for HR, it’s unlikely. It’s the information represented on your pay stub that is verified.
Read: The ultimate guide to paystub templates
FAQs
How does the verification process work? The specialist will start by researching the company listed on the paystub. They will check common directories and business listings to gather information on how long the business has been around, ownership, reported income, suppliers, customers, and other useful facts.
Is Paystub enough for employment verification? ›
Types of proof of employment
Other documents that employees may be able to use to support proof of their employment include: Official pay stubs. Bank statements. Tax returns from the previous two years.
How do underwriters verify paystubs? ›
Mortgage lenders usually verify income and employment by contacting a borrower's employer directly and reviewing recent employment and income documentation. These documents can include an employment verification letter, recent pay stubs, W-2s, or anything else to prove an employment history and confirm income.
Can apartments detect fake paystubs? ›
Yes, many apartments and landlords take paystubs rent verification seriously. Based on our observations, they often use various methods, including: contacting employers directly. using verification services to confirm the authenticity of the pay stubs provided by potential tenants.
What information appears on a pay stub? ›
Your pay stub contains three main sections: how much you are being paid, the taxes you are paying, and any other deductions that are being made. Pay attention to your gross, year-to-date, and net earnings. The deductions that relate to taxes are generally the most confusing, particularly those related to FICA.
How to prove income without pay stubs? ›
Here are options for showing proof:
- Employment verification letter. ...
- Signed offer letter. ...
- W-2s, 1099s, and tax returns. ...
- Official statement/letter from a CPA or trust manager. ...
- Bank statements. ...
- College financial aid documents. ...
- Guarantor.
Yes, it is illegal to make fake pay stubs. The pay stub violations and penalties may be severe depending on the number of violations done. Misrepresenting the information on a pay stub, such as by altering the number of payments received or hours worked, is a form of fraud.
Do employers actually verify employment? ›
Some hiring managers do it themselves, reaching out directly (typically via phone) to your current or previous employers to request official verification. Alternatively, employers may use professional background screening firms and/or an employment verification service such as The Work Number® from Equifax.
How does income verification work? ›
Common documents used in income verification include W2s, 1099s, paycheck stubs, and bank statements. These documents prove the renter earns the income they claim and is able to afford the property they are applying for. Traditional income verification requires the borrower to find and share paper documents or PDFs.
Can banks detect fake pay stubs? ›
This may seem oddly specific, but decimals that are out of alignment are an easy watch to detect a fake document. Accounting software automatically aligns all the digits and decimal points, so if anything is out of place, the pay stub is likely fake. This includes the overall look of the document as well.
Banks can call your employer to verify employment for personal loans. But most banks will simply verify your income through a tax document or bank statement when evaluating your application for a personal loan.
How do lenders verify proof of income? ›
Mortgage lenders verify employment by contacting employers directly and requesting income information and related documentation. Most lenders only require verbal confirmation, but some will seek email or fax verification. Lenders can verify self-employment income by obtaining tax return transcripts from the IRS.
Can Paystubs verify employment? ›
The most traditional means of proving employment is through pay stubs. These official documents issued by your employer clearly outline your employment details, including your name, job title, pay period, gross earnings, deductions, and net income.
How do I edit pay stubs? ›
Step By Step Guide: Editing Pay Stubs
- Open your chosen editable pay stub template. Use Microsoft Excel or any payroll software.
- Review employee information. Verify their names, addresses, and so on.
- Review employee performance. ...
- Review deductions, if any. ...
- Review employee's net payment. ...
- Preview and print the pay stub.
Lenders often require mortgage borrowers or other loan applicants to supply two recent paystubs to verify their income. As rental and mortgage fraud continues to rise, submitting fake paystubs is one of the ways that would-be homebuyers are committing fraud.
Do employers check pay stubs? ›
Some companies will ask for pay stubs from your current or previous employer, or they'll ask to see tax returns. If the salary you stated in the interview can't be verified, the offer can be nixed. It's totally legal, so protect yourself and tell the truth.
Do auto lenders verify pay stubs? ›
If you're a W-2 employee, banks will generally ask to see your last three months' worth of paystubs. Some banks will bypass the paystubs by using an e-verify system to contact your employer and verify both income and employment. In the latter case, you may be able to get immediate approval on your auto loan.
How do I make a legit pay stub? ›
First, it contains key identifying information, such as:
- Company name, address, and phone number.
- Employee's name, address, social security number, and employee ID.
- Pay period start/end dates.
- Number of regular/overtime hours worked.
- Base wage rate.
- Check number.
- Pay date.
Pay stubs are automatically reviewed for fraudulent activity.
