Does The Work Number Verify Income accurately and efficiently for loan approvals and other financial transactions? Yes, The Work Number streamlines income verification, but understanding its role and limitations is crucial for both employees and verifiers. income-partners.net offers valuable insights into navigating these processes and leveraging strategic partnerships for income growth. We help you understand the income verification process and explore opportunities for income enhancement. Let’s explore The Work Number’s features and unlock paths to financial success together.
1. What Is The Work Number and How Does It Work?
The Work Number is a database that provides automated income and employment verifications. It is a service offered by Equifax Workforce Solutions. It helps streamline the verification process, making it faster and more efficient for verifiers, such as lenders and landlords, to access employment and income information.
Here’s how it works:
- Data Submission: Employers regularly submit their employees’ payroll data to The Work Number. This data includes information such as employment status, income, and pay history.
- Verifier Access: When an employee applies for a loan, lease, or other service that requires income verification, the verifier (e.g., lender, landlord) can access The Work Number to obtain the necessary information.
- Employee Consent: Typically, the employee provides consent for the verifier to access their information through The Work Number as part of the application process.
- Verification Process: The verifier logs into The Work Number, provides the employee’s Social Security number and the employer’s code (if required), and requests the necessary verification report.
- Report Generation: The Work Number generates a report containing the employee’s employment and income information, which the verifier uses to make their decision.
This system reduces the need for manual verification processes, such as contacting employers directly, and helps ensure that verifiers have access to accurate and up-to-date information.
2. How Does The Work Number Verify Income?
The Work Number verifies income by leveraging a comprehensive database populated with employment and income data directly from employers. This process ensures accuracy and efficiency in providing verifiers with the necessary information.
2.1. Data Submission by Employers
Employers regularly submit payroll data to The Work Number, including:
- Employee’s name and Social Security number
- Current employment status (active or inactive)
- Hire date
- Gross pay
- Year-to-date earnings
- Pay frequency (e.g., weekly, bi-weekly, monthly)
This data is securely stored and updated, providing a reliable source of information for verifiers.
2.2. Verification Process
When a verifier needs to verify an individual’s income, they follow these steps:
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Employee Consent: The employee provides consent, usually during the application process for a loan or lease, allowing the verifier to access their income information.
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Verifier Access: The verifier logs into The Work Number system using their credentials.
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Information Input: The verifier enters the employee’s Social Security number and, if required, the employer’s code. For example, the UT Austin employer code is 13938.
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Permissible Purpose: The verifier must state a permissible purpose for the verification, such as extending credit or reviewing an account.
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Report Generation: The Work Number generates a verification report that includes:
- Employment status
- Hire date
- Current and historical income information
- Employer details
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Data Security: The system ensures that only authorized verifiers with a legitimate purpose can access the data, maintaining compliance with the Fair Credit Reporting Act (FCRA).
2.3. Types of Verification Reports
The Work Number offers two primary types of verification reports:
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Verification of Employment (VOE):
- Confirms the employee’s job title
- Employment status
- Length of time with the employer
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Verification of Income (VOI):
- Includes all information in the VOE report
- Total pay for year-to-date wages
- Historical income data
2.4. Safeguards and Compliance
The Work Number implements several safeguards to ensure data accuracy and compliance:
- Credentialing Process: Verifiers undergo a thorough credentialing process to validate their legitimacy before gaining access to the system.
- Authentication: Verifiers are authenticated each time they log in to the system.
- Permissible Purpose Requirement: Verifiers must provide a valid permissible purpose for each verification request.
- Audits: The Work Number conducts audits to ensure verifiers comply with data use policies.
3. Who Can Use The Work Number to Verify Income?
The Work Number is available to a variety of entities that need to verify employment and income for legitimate purposes. Here are the primary types of users:
- Lending Institutions: Banks, credit unions, mortgage companies, and other financial institutions use The Work Number to verify the income of loan applicants. This helps them assess the applicant’s ability to repay the loan.
- Property Managers: Landlords and property management companies use The Work Number to verify the income of prospective tenants. This helps them determine if the tenant can afford the rent.
- Government Agencies: Government agencies use The Work Number for various purposes, such as verifying eligibility for public assistance programs, child support enforcement, and other legal and administrative needs.
- Employers: Some employers use The Work Number to verify the employment history of job applicants. This can help them confirm the applicant’s previous employment dates, job titles, and responsibilities.
- Background Check Companies: These companies use The Work Number to verify employment and income as part of background checks for employment, security clearances, and other purposes.
- Insurance Companies: Insurance companies may use The Work Number to verify income when assessing claims or determining eligibility for certain policies.
To access The Work Number, verifiers must:
- Register and be Credentialed: They must register with Equifax Workforce Solutions and undergo a credentialing process to ensure they are legitimate and have a permissible purpose for accessing the data.
- Provide a Permissible Purpose: They must provide a valid, FCRA-compliant reason for requesting employment and/or income information. Common permissible purposes include extending credit, conducting an account review, or for employment purposes.
- Obtain Consumer Consent: They must obtain the employee’s consent to access their information. This consent is typically provided when the employee signs a loan application, lease agreement, or similar document.
