Massachusetts PEO Bond | AmeriPro Surety Bonds |
PEO – Surety Bond Requirement
As of the summer of 2018, Massachusetts PEO’s – professional employment organizations – are now regulated by a group of laws, one of which is the requirement to file a surety bond.AmeriPro Surety Bonds offers this surety bond for your compliance.
Massachusetts PEO Bond – Amount Required and Pricing
Section 193 (j) (2) of the General Laws of Massachusetts states that a professional employment organization must file a $250,000 surety bond at the time of registration.
Applicants for the Massachusetts PEO bond will complete an application which may be detailed. This is because of the surety bond’s large size and to determine pricing (known as underwriting).
As part of the underwriting process, a credit check – either personal or business — will be required.
A well qualified applicant will likely pay just about 1% or slightly more for this bond; however, the amount required can only be determined after pricing.
Duration of this Professional Employment Organization Surety Bond
Once issued, the Massachusetts PEO bond will be active for one year from the date of issuance, thereafter the bond is renewed.
Options may exist to prepay the surety bond for 2 or 3 years, thereby offering a savings over year to year renewal.
The Purpose of this Surety Bond
While now required of your PEO company, the Massachusetts PEO bond is for the benefit of the Commonwealth and your clients.
According to the statute, the PEO suety bond is a financial guarantee that all taxes owed to Massachusetts will be paid; for your clients, it ensures that wages, benefits, and other entitlement benefits owed will be paid as required.
As principal for this surety bond, you are responsible to reimburse the surety should any claim ever be paid against your bond. However, the total sum will not exceed the aggregate amount of the $250,000 surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout the Commonwealth and New England.
Our agency also provides surety bonds nationwide.
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