Self-Employed? Here’s How to Show Proof of Employment

Full-time employees with a contract often wonder how to show proof of employment—usually by requesting a verification letter from their company’s human resources department.

For self-employed individuals however, such as freelancers, proving employment can be more challenging. Without a traditional employer, they must rely on alternative documentation to verify their income and work history.

Employment verification plays a crucial role when applying for a home, car, or personal loan. In this article, we cover everything you need to know about how to show proof of employment, including what it is, why it’s important, and how to provide it.

Who Qualifies as a Self-Employed Worker?

Self-employed refers to independent contractors and sole proprietors who report self employed proof of income. If you’re self-employed, you run your own business instead of working for an employer.

According to the Internal Revenue Service (IRS), a self-employed person in the U.S. is someone who:

• Partakes in trade or business as a sole proprietor or an independent contractor
• Is part of a partnership involving a trade or business
• Is in business for themselves, including but not limited to part-time endeavors

Self-employed individuals may work as the following:

What Is Proof of Employment?

Proof of employment is a form of documentation that hiring companies or financial institutions request to confirm an individual’s work history or current employment status. 

There are many reasons why a third party may want to verify your employment, some of which include: 

Loan Applications: 

If you want to apply for a loan, lenders will want to see whether or not you will be able to pay back the funds based on your monthly income. There is a good chance that they will want you to provide proof of self employment or an income verification letter. This information helps lenders understand how you manage your monthly payments and how a loan could impact your cash flow.

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Once lenders understand this, they can determine the repayment schedule in the loan terms. 

Applying to Rent:

Property owners who lease out their homes or apartments want to ensure that new tenants will be able to afford the rent. With remote work becoming popular, landlords may also want to get an idea of how you will use the property.

For example, whether you will be on the property throughout the day or if you’ll be working elsewhere.

The “how to show proof of employment process” helps the landlord get a better understanding of what kind of work you do and if you have a stable income to cover the rent. 

Seeking Another Job: 

If you’re looking for a new job, it’s likely that salary negotiations will take your current or most recent pay records into consideration.

A new employer often requests an employment verification letter to confirm your salary information.

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Providing prospective employers with insight into your previous compensation can enhance their understanding of your experience and market value. However, as of February 2025, 21 states and the District of Columbia have implemented salary history bans. These laws prohibit employers from inquiring about an applicant’s past earnings, including previous bonuses or benefits. The primary objective of these bans is to eliminate pay disparities affecting women and minorities by preventing historical salary inequalities from influencing future compensation decisions.

Credit Card Applications:

Financial institutions weigh up many factors when they consider requests for credit cards, including the applicant’s current employment and salary.

A verification of employment shows credit companies that there is a good chance that you will be able to meet your debt obligations and payments in a timely manner.

Although your current salary doesn’t influence your FICO Credit Score, it does give creditors a better idea of how likely you are to afford your repayments. 

How to Show Proof of Self-Employment

HR departments at large businesses have likely dealt with proof of employment requests in the past and may have a system in place to issue these documents.

However, if you’re self-employed, you may need to create these records yourself.

Now that you have a better idea of what proof of employment is and why it’s necessary, let’s take a closer look at some other ways that you can provide self employed proof of income.

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-Annual Tax Returns-

Form 1099-NEC reports the income independent contractors earn.

Companies must file a copy with the IRS and send another to the contractor. This is so the IRS knows how much tax revenue to expect from self-employed workers. It’s important to note that independent contractors who earned more than $600 from a business should receive a Form 1099-NEC. 

Not only does the 1099-NEC serve as a record of an independent contractor’s salary verification, but it also gives them a form to attach their Form 1040 to. Form 1099-NECs are also used for self employment verification letter purposes. This is because it provides physical proof of self-employed income, the amount earned and, where it came from.

January 31st is the deadline for providing independent contractors with a copy of form 1099-NEC. It is also the deadline for providing employees with Form W-2. Also known as the Wage and Tax Statement, the Form W-2 is distributed by employers to their formal staff at the end of each tax year.

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-Pay Stubs- 

A Pay Stub is a written, itemized statement that documents how much a person earned during a specific pay period. 

There are a few different ways that self-employed workers can receive and create pay stubs. One option is to contact the HR department at the company you provided services for and ask them for a copy. You can also produce your own pay stubs online with a company like FormPros. We’ll go into more detail about our efficient document generator later in this article. 

For self-employed workers, the following basic information is usually provided on a paystub: 

• The name of the company they provided services for, as well as its address.
• If applicable, the independent contractor’s job title.
• The number of hours worked during the pay period.
• The total wages paid before the self-employed worker’s deductions.
• Federal, state and local taxes withheld from the individual contractor’s gross earnings.
• Other withholdings, including the employee’s share of insurance premiums. 
• Net pay. 

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Pay stubs are useful because they can serve as a proof of income letter self-employed individuals need when applying for loans or proving financial stability.

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-Bank Statements-

Bank statements—also known as account statements—are documents that are typically sent by a financial institution to their account holders each month. The statement is a summary of all the transactions that the account holder made during a particular period of time. 

This statement contains bank account information such as account numbers, and a detailed list of the holder’s total income and expenses. For lenders and financial institutions, a bank statement can provide proof that the individual can afford to meet their repayments. 

Bank statements can sometimes be used to supplement a self employment letter, proving income alongside a pay stub or reference letter. 

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-Employment Verification Letter-

An Employment Verification Letter is a document written by a current or past employer that confirms the employment status of a former or current employee.

Employment verification letters can be requested by potential employers, or various other governmental agencies and financial institutions. 

Independent contractors can use self employment letters to show when they worked for a particular company, what their duties were and what they were paid.

This letter can also be submitted with pay stubs, tax returns or bank statements as employment confirmation for independent contractors. 

Create an Employment Verification Letter Now

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Making Proof of Employment Easy

Proving your employment status may be more important than you realize—whether for securing loans, renting a home, or handling tax filings. However, managing the paperwork can be time-consuming, especially for independent contractors who juggle multiple responsibilities.

At FormPros, we understand the value of your time and money. That’s why we’ve designed an intuitive online form generator that lets you create customized pay stubs, Form 1099-NECs, and employment verification letters in minutes.

Even traditionally employed workers can quickly generate professional employment verification letters with our platform.

Why Choose FormPros?

✅ Simple and user-friendly – No technical skills required
✅ Prevents costly errors – Ensures accuracy and compliance
✅ 100% safe and secure – Your data is protected
✅ Legally binding documents – Trusted by businesses and professionals
✅ Money-back guarantee – Risk-free experience

The best part? FormPros costs a fraction of what you’d pay for an accountant or payroll service. Plus, our subscription plan lets you create unlimited documents at a lower cost.

Try FormPros today and see how easy it is to generate accurate, professional documents—effortlessly.

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