Moneyzine
Contents
/Careers Guides/Verifying Compensation

Verifying Compensation

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 26th, 2023
Advertiser Disclosure

Definition

The term verifying compensation refers to a process employers use to confirm the level of wages paid to a prospective employee in the past. As part of their hiring process, a prospective employer may ask a job candidate for a copy of their Form W-2.

Explanation

Some employers may want to verify the historical compensation of a prospective employee before making an offer. While this approach is not illegal, it is not considered a best practice. The compensation paid to a qualified individual should be based on the value of the position, not what someone was paid on their Form W-2.

That being said, if someone is interested in working for the employer and that's their policy, then complying with the request may be the only viable option. One counter approach might be to ask the prospective employer if they would also be willing to provide the average salary for employees holding similar positions. This information helps to "level the playing field" when negotiating a salary.

Individuals that have not retained copies of their Form W-2 should be able to request these documents from their employer. Copies can also be obtained directly from the Internal Revenue Service (IRS) since they were filed with prior federal income tax returns.

Related Terms

Related Content

  • Is It Worth Pursuing a Master's Degree?
    In an era where education is synonymous with opportunity, many consider pursuing a Master's degree a surefire way to advance their careers. However, is it really the golden ticket to success we've been led to believe?
    March 21st, 2024
  • The gender pay gap, the persistent disparity in average earnings between men and women throughout their careers, serves as a critical measure of wage inequality. This gap underscores the ongoing issue of income disparity, despite the ideal of equal pay for equal work.
    March 14th, 2024
  • 7 Essential Financial Moves After Losing Your Job
    Navigating the stormy seas of job loss? You're not alone.
    February 23rd, 2024
  • The Most In-Demand Skills to Get Hired in 2024
    Every job requires a combination of vital skills, but what skillset is valued most in 2024? As the job market evolves, staying ahead means it’s key to understand and acquire the skills that employers value most.
    April 12th, 2024
  • Key Productivity in the Workplace Statistics for 2024
    In 2023, global employee engagement saw a slight uptick, with 23% of employees engaged, up by two percentage points. However, a sizable 59% are categorized as disengaged, while actively disengaged employees, known as "loud quitting," declined to 18%. These figures highlight the persistent challenge for organizations to cultivate happiness and productivity in the workplace.
    January 31st, 2024

Contributors

Moneyzine 2024. All Rights Reserved.