Human Resources Employment Verification Employee

Employment Verification Form H1028 Explained

For individuals residing in Texas, Form H1028--Employment Verification--is used to secure confirmation of income and other employee earnings via an employer when the information provided by an employee is not sufficient.

Here, we’ll look at Form H1028’s individual sections and what employers need to know about completing the form properly.

When is income information required for employment verification?

Three situations require earnings information to verify employment.

1. Loan origination

While it’s useful for loan providers to know whether a borrower has gainful employment, lenders’ primary concern is their customers’ ability to make timely payments and honor their financial obligations over time. Income information can help give a strong picture for a borrower’s projected earnings, helping lenders ensure that they’ll be adequately repaid.

2. Property-Owner Verification

A new lease is a new financial burden so property owners, likewise, usually want to verify that a lessee has the requisite income to make their monthly payments. Property owners may also want to verify the type of employment held by the lessee to better understand how frequently they’ll be present at their new residence or workspace.

3. Creditors considering extending new offers

Credit score remains the most important deciding factor when creditors are considering issuing a new line of credit, as it gives a clear picture of a customer’s past record of repaying their debts. Income information is also useful for creditors as it helps them understand how the line of credit under consideration fits in with a borrower’s overall financial situation.

Form H1028 Employment verification basics

Pay stubs and executed contracts will sometimes suffice as proof of income, but since they’re easy to falsify, third parties requesting employment verification will often require proof directly from a current or former employer.

In Texas, employers can use Form H1028 to document an employee’s income information and overall earnings. A PDF copy of the latest iteration of the form can be found on Texas’ main benefits site (https://yourtexasbenefits.com/GeneratePDF/StaticPdfs/en_US/H1028_Dec2014.pdf).

Completion of income verification also has benefits for the employer, as they’re often awarded tax credits for hiring people who get state benefits like Food Stamps or Subsidized Job Training Programs.

What information is needed to complete Form H1028?

Form H1028 is fairly straightforward and usually submitted by the person needing verification. Before doing so, employees must enter their full name and Social Security Number where applicable. The remainder of the form is completed by the employer and includes the following fields:

  • Company or Employer Name: Identifies the employer in question
  • Company or Employer Address: Provides contact information for any follow-up or clarification required
  • Employee Name (as shown in employer records): Verifies the employee’s identity
  • Employee Address: Verifies the employee’s address
  • Dates of Hiring, First Check, and Separation: Confirms the employee’s tenure with the company in question
  • Job Description: Explains an employee’s responsibilities, which is particularly relevant when an employment verification request is used in hiring situations
  • Full-Time vs. Part-Time Status: Describes the nature of an employee’s work arrangement
  • Average Hours per Pay Period: Gives a clear picture of the employee’s weekly and monthly obligations to their employer
  • Rate of Pay: Enables calculation of an employee’s projected future earnings or clarification of the breakdown of their hours worked vs. overall income
  • Frequency of Pay: Highlights the availability of cash or other tender for the employee to fulfill ongoing financial obligations
  • FICA and FIT Withholding Information: Identifies any major withholdings from employee earnings for a given pay period
  • Record of Leave or Absence: Gives context on any gaps in compensation during an employee’s time with a company
  • Profit Sharing or Pension Information: Provides further context on non-salary earnings and company benefits
  • Health Insurance Information: Identifies further deductions from employee pay
  • Expected Changes in Employee Income: Helps predict an employee’s projected earnings over coming pay periods
  • All Earnings by Employee, including Training: Gives concrete proof of all employee earnings and is the most crucial for employers to complete; when possible, they should include proof of payment(s) along with form submission
  • Employee’s Current Work Status (e.g., Current Employee, Terminated): Clarifies whether an employee is still collecting compensation; when identifying an employee who has left, employers should provide the reason for separation

Employers must keep copies of all completed forms for three years.

How do employers submit Form H1028?

After the form is complete, including all information about compensation, both salaried and other bonuses and benefits, employers should mail it to the party making the verification request or present the form to the employee in question with an addressed, stamped envelope for the eventual recipient.

Income-centered employment verifications are often time-sensitive, so employers should seek to complete and submit the form as quickly as possible to help employees get timely certification, in case a new loan, line of credit, or position hinges upon successful confirmation of earnings.

Completing income verification in Texas

Income verification is illegal in some locales, including New York City and California, but the law in Texas frees employers to share this information when relevant.

Occasionally, new Texas employers will request confirmation of employment income to help make an appropriate offer to a new recruit. Employers are not required to release this information, and should confirm the relevance of the request with the employee to avoid awkward mix-ups or sabotaging their wage negotiations.

Employers in many other states are required to draft Verification of Employment letters, often from scratch. Form H1028 gives Texas a structured way to provide income verification for a current or past hire without revealing any unnecessary information.

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