The form 16 is significant for employees since it acts as a basis for their income tax return. As such, Form 16 verification can help you make sure that any candidate does not lie about the details of their past compensation. If the report of a form 16 verification shows that the candidate’s claims are credible, and then you can go ahead to deciding a suitable salary for them. When combined with a credit check, Form 16 verification can be even more reliable. Not only will you be sure of authentic information provided by the candidate regarding his or her former salary, you will also be sure through a credit check that they are fiscally responsible individuals.
How to verify form 16: Form 16 is one of the most significant tax documents for an employee since it acts as a basis for their income-tax return. As such, Form 16 verification can help you make sure that any candidate does not lie about the details of their past compensation. If the report of the Form 16 verification shows that the candidate’s claims are credible, then you can go ahead to deciding a suitable salary for them.
A company that deducts tax for employees at the source is legally required by the Income Tax Act to issue a Form 16 to each employee, who is to then act upon it in preparing their income-tax return.As such, Form 16 verification can help you make sure that any candidate does not lie about the details of their past compensation.
What is a credit check: A credit check is when a company or organisation verifies the creditworthiness of their employees by checking their credit history. This is important because it provides assurance to the company that its employees will not be involved in any financial mismanagement like frauds, which would be a huge loss for them. You might think it is a kind of invasion of your privacy, but it is an essential regulation for almost every business to verify their employees’ credit history. This is because these businesses need to assure themselves that they are not hiring those individuals who are likely to cause financial losses to the company. Banks and other financial institutions have been doing this since decades, and now even employers conduct their employees’ credit checks before employing them in managerial or higher positions.
Knowing your employee’s credit status before hiring them is important. It gives you a way to check whether they are trustworthy enough to handle sensitive information or money. It can also help you figure out if they will be a valuable employee in the long-term. You can request for a credit check by contacting a national credit report organization such as Equifax, Transunion or Experian, or another source which provides the service you require.
A credit check is essentially a process to look into the financial history of any person or company. This is because the owner of the business wants to know its financial status, which will then help him decide whether or not to do any business with it. For instance, companies conduct such checks when they want to clarify their relationship with the vendors they are dealing with, or when they want to hire a new employee.
