When you need proof of employment, what are the ways you can go about doing that if you don’t have a traditional job? Here are a few.
Don’t have a traditional job, but need to find some way to show proof of employment?
You’re not alone. Everyone from nannies to freelance writers and many more professionals all struggle with finding a legitimate way to prove their employment.
Fortunately, there are several ways to prove you’re employed outside of the traditional methods.
“A-typical” Pay Stubs
For many freelancers, bloggers, or hairstylists, your only way to get paid is via an online secure method like PayPal or Venmo. Fortunately, you can use your online payments from these mediums as proof of your employment.
Sites like Financegab and others can tell you when you need proof of income documents and what types of documents work.
For example, you may need to use screen-shots of your PayPal payments or a PDF printout from the App when you’re applying for certain benefits or health insurance coverage.
Screenshots or PDFs printed from PayPal or other payment sources can prove how often you are paid and what the gross amounts are.
Federal Tax Return
Another valid way to prove your income is to provide a federal tax return from the previous year. Tax documents are a safe and valid way to show what your gross income was for the year.
Bank Statements: Personal & Business
Bank statements are commonly used as proof of income for individuals who are self-employed or freelance workers.
You can provide either a personal bank statement or a business bank statement to help show how much money you brought in for the previous year.
If you employ other workers, you will also want to include signed timesheets, or proof of payroll with your bank statements so you can show how much money was spent paying employees and managing your business.
For “Unearned” Income
If you have money coming in each year that is unearned, there are plenty of ways to provide proof of this income. Things like severance pay, annuity, prizes, court-ordered awards, inheritances, and more qualify as unearned income.
All of these must be listed when indicating how much income you received in a year. Don’t risk tax fraud by skipping these.
Most often inheritances or the like will come with some kind of certificate or legal documentation indicating that you have received the finances or properties.
These legal statements or certificates should be kept as they will serve as your proof of unearned income when the need arises.
Wages and Tax Statement
Also known as your W-2 or 1099, both documents may be required to prove your income if you worked for someone else and were self-employed in the same year.
If you are formally employed by someone else, they should provide you with a W-2 at the end of each year for tax purposes.
Further Proof of Employment
When it comes to proof of employment, there are many ways you can legally prove your income. If you find you are unable to provide one of the more common documents, you may consider obtaining an unemployment or social security benefits letter.
You may also use self-employment ledger documentation.
For more helpful financial hacks and hints, browse the personal finance portion of our blog.