1 (844) 589-9732 info@ameriprosuretybonds.com

Texas Professional Employer Organization Bond

Texas PEO’s use a state developed formula to determine the amount of the Texas professional employer organization bond required to be posted with the Department of Licensing and Regulation. AmeriPro Surety Bonds helps you to understand that formula and works for you to get the best bond pricing available: 844-589-9732.

Texas Professional Employer Organization Bond |

AmeriPro Surety Bonds | 844-589-9732

 

 

 

Texas Professional Employer Organizations

 

 

 

In former times, Texas professional organizations (PEO’s) were more commonly referred to as staff leasing companies.

Both names mean the same; however, PEO is the updated name (and abbreviation) used today.

The state refers to the term staff leasing company as “outdated”.

PEO’s are regulated by the Texas Department of Licensing and Regulation (TDLR).

This Department is also the obligee; that is, they are the entity requiring the Texas professional employer organization bond.

This surety bond is a prerequisite for licensing.

 

 

 

Texas Professional Employer Organization Bond: Purpose

 

 

 

The Texas professional employer organization bond is required as a financial guarantee to ensure that a licensed PEO, its employees, owners, operators, and managers will comply with all laws as it relates to the their business conduct.

The surety bond protects others from acts of fraud and other criminal activities committed by a PEO in the course of their duties.

 

 

Texas Professional Employer Organization Bond: Determining the Amount Required Using a “Formula”

 

 

 

Put simply, to determine the amount of the Texas professional employer organization bond required to be posted with the Department, a formula is used.

Section 91.014 of the Texas Labor Code requires a PEO to meet certain capital requirements.

It is this formula which is also used to determine the amount of the bond required.

This is what is done to determine the amount of surety bond required:

You add the amount of capital required as per Section 91.014 of the Texas Labor Code:

  • $50,000 if the PEO employs fewer than 250 employees;
  • $75,000 if the PEO employs between 250 and 750 employees;
  • $100,000 if the PEO employs more than 750 employees.

PLUS:

The amount of negative working capital (where liabilities exceed assets)

EQUALS:

The amount of the Texas professional employer organization bond required.

 

 

 

If You Remain Uncertain After Your Calculations for the Surety Bond Required

 

 

 

If you are still uncertain as to the amount required, we understand!

AmeriPro Surety Bonds recommends the following:

We recommend that you submit the dollar amount you believe is required to a trusted accountant for verification; or, you contact the Department (TDLR) for assistance in determining the amount required.

Or, perhaps, both.

 

 

 

Texas Professional Employer Organization Bond: Premium Required

 

 

 

The premium required for this surety bond will be determined by the following criteria:

  • The total amount of the surety bond required based on the formula used above;
  • Financial standing of the applicant, or PEO company as demonstrated by records, if applicable (this may not always be required);
  • The applicant’s credit score (this will be required).

AmeriPro Surety Bonds estimates that the premium for the bond will be a few percentages of the bond amount.

In those cases where an applicant may have a spotty or poorer credit history, the premium may be substantially more; however, in all cases our agency will work to find you the best surety bond pricing.

In those few cases where the surety bond premium may seem exorbitantly high, we may be able to also offer premium financing.

 

 

 

Texas Professional Employer Organization Bond: Duration

 

 

 

Once purchased, the surety bond is renewed annually.

For those who may need to do so, we are able to postdate this surety bond to have the bond run concurrent with the TX PEO license.

 

 

 

Becoming Licensed as a Texas PEO:

 

 

 

Applicants for the Texas PEO license must complete the following:

  • Completion of a Texas PEO application;
  • Payment of the application fee as required – $300 – $450 — $700 as required by the number of PEO employees;
  • Providing a worker’s compensation certificate of insurance;
  • Information regarding the controlling person or employees;
  •  The surety bond as required using the formula above.

 

 

AmeriPro Surety Bonds

 

 

 

AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit bonds, fiduciary bonds, contractor, and court bonds throughout Texas.

We also provide surety bonds nationwide.

We hope to earn your trust.

 

 

 

Call AmeriPro Surety Bonds today at 844-589-9732.

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AmeriPro Surety Bonds

Our focus is exclusively surety bonds. We have two areas of concentration: YOU, our customer; and providing you with the surety bond that you need. Whether the bond is an "instant issue"; is for a contractor; a court bond; or one for a client with lower credit scores, AmeriPro Surety Bonds dedicates itself to providing our customers with a seamless, professional, and quick surety bond experience.

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