California Guarantee Bond | AmeriPro Surety Bonds
California Employers — Voluntary Plans
Certain California employers may elect to participate in what is known as a Voluntary Plan. This plan is administered by the California Employment Development Department.
In a nutshell, the Voluntary Plan is an alternative to California’s SDI (short-term disability insurance) which is mandatory.
The Voluntary Plan also offers disability insurance and PFL (Paid Family Leave). The VP is statutorily prohibited from costing more than a SDI; and the plan must also offer one feature which is better than an SDI program.
Determining the Amount of Surety Bond Required
An applicant for the Voluntary Plan has the option of obtaining a California guarantee bond. This surety bond serves as a financial guarantee for the Employment Development Department that you will pay any liabilities for assessments under the plan as outlined in Section 1126, Section 1176; and Part 2 of the Code.
According to the EDD, the formula for determining the amount of surety bond required is:
Employers estimated taxable wages from the previous year x 0.5 x your current State Disability Insurance Contribution Rate equals – VP Security Deposit.
Qualifying and the Premium
Obtaining the California guarantee bond includes the completion of a short surety bond application — which we’ll begin with you over the phone—but which will also require your signature.
After submission of your signed application, there is an underwriter review which includes a credit check inquiry.
To be approved, as an applicant, you will need good credit.
Approval is offered at 2% of your bond’s amount.
Once your surety bond is approved and the premium paid, our agency issues the bond to you immediately. Included with your original surety bond will be a Power of Attorney form and a document from us notarized as Surety.
You’ll sign your original bond as Principal, and file all documents to:
State of California
Employment Development Department
800 Capitol Mall
Sacramento, CA 95814
Amendments To Your Surety Bond
From time to time as circumstances warrant, you may either need to change the name on your surety bond, or the amount within one term.
In such cases, our agency will offer you a Rider rather than issue a new surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, court, and probate surety bonds in California and all 50 states.
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