Applicant Refuses to Verify Self-Employment Income

Q I am trying to determine the eligibility of an applicant who has been working as a hairstylist since January 2008. She is not self-employed; she is an employee of the hair salon. Her employer completed our third-party verification, but refused to give us a detailed income printout. In addition, the applicant does not have any pay stubs. Our state agency requires that we obtain either a printout or pay stubs. The employer told us that the applicant receives 50 percent commission and 100 percent of the tips she makes. It is difficult for us to calculate the income, because it could vary drastically according to how many clients she sees in a given week. Originally, I had asked her to get a profit and loss statement as a means of estimating her income. She will not do this, because she isn't self-employed and does not have any expenses. What is the best course of action to take here?

A The only course available is for you to deny her application, Moreland says. You need a reliable way to verify the applicant's income. The applicant must help you with this process by providing a means for doing so. Since the employer is not cooperating and is not providing documents showing how much the applicant gets paid, you have no reliable way of verifying the information.

As a site manager, you offered a reasonable alternative by asking the applicant to provide the missing information. But the applicant either doesn't want to or can't provide what is required. Without a reliable means for verifying her income, you have no alternative but to deny her application.

However, don't be surprised if the missing information is suddenly provided once the applicant has been denied. If, at long last, the applicant provides the required information, refer to your site policy on re-application. Also, make sure the newly provided information is reliable and conforms to your state agency monitoring requirements.

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