(844) 589-9732

California Guarantee Bond

March 16, 2020

The California guarantee bond is an option for those who participate in California Voluntary Plan as outlined by the California Employment Development Department. Approval is offered at 2% on the basis of good credit. Please call AmeriPro Surety Bonds at 844-589-9732.

California Guarantee Bond | AmeriPro Surety Bonds

844-589-9732

 

 

 

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.

 

 

 

About Us

 

 

 

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.

Please call our agency today at:

844-589-9732

Or, you may fill out the form below and a Surety Agent will contact you...

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