Professional employer organizations (PEO’s) are regulated by the New York Professional Employer Act of 2015.
PEO’s also come under the jurisdiction of the New York State Department of Labor which is the obligee for this bond. This means that the Department is the entity which requires that New York PEO’s obtain a surety bond, which in this case is for $75,000.
The bond’s requirement is also a prerequisite for licensing in New York.
The $75,000 surety bond required of PEO’s in New York is for the benefit of employees of professional employment organizations.
The bond’s requirement, really, is solely for their benefit although purchased by a PEO.
Specifically, this surety bond is a financial guarantee which ensures that an employee’s taxes, benefits, and wages are paid in a timely manner by a PEO, in case the PEO fails to make such payments in a timely manner.
By filing the bond, the principal (the purchaser of the bond) allows the Department of Labor to make a claim against the bond should circumstances so dictate.
If a claim were ever paid on this surety bond, it is the legal responsibility of the purchaser (known as the principal) to reimburse the surety for all costs involved in satisfying a claim.
As an applicant for this surety bond, you will only be required to pay a small percentage of the $75,000 surety bond amount.
Our agency ideally will speak with you and complete the application over the phone. Turnaround times for determining the bond premium amount can range from a few hours to one business day.
Much of that timing will depend on when you call, and whether you have the information needed that we will ask as part of the application process.
As part of the application process, a credit check is also performed.
Your NY PEO bond should be issued to run concurrent with your license.
The bond itself is active for one year from the issuance date and must be renewed annually.
Our agency will mail a renewal notice to you some 60 days before your active bond expires.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary bonds throughout New York state.
Our focus is one thing: Finding our customers the surety bond that they need at a fair price.
Our agency also provides surety bonds nationwide.