Professional Employer Organization (PEO) Bonds

Easy.  Reliable.  Compliant.

Low cost program
All 50 states
PEOs and CPEOs covered

BONDS REQUESTED.  BONDS DELIVERED.

International Sureties’ low-cost bond program for qualified PEOs and those seeking IRS Certification is an easy solution to your bond requirements.  We handle PEO’s and CPEO’s and are ready to assist.

Click below to apply or contact a License & Permit Specialist directly.

Quick Response Time

Exclusive Bond Programs

A-Rated Surety Providers

Licensed in Every State

FAQs

What is a Professional Employer Organization Bond?

A guarantee that you will play by the rules and perform your duties as a PEO licensee.

Three party instrument by which:

  1. One party – SURETY
  2. Guarantees that a second party – PRINCIPAL
  3. Will perform an obligation or duty owed to a 3rd party – OBLIGEE

KEY POINT – the Surety guarantees that a PEO will abide by State laws.

What is a Certified Professional Employer Organization Bond?

To become and remain certified under the CPEO Program, CPEOs must meet tax status, background, experience, location, financial reporting, other requirements described in the statute and regulations, and a CPEO surety bond.

Within 30 days of receiving notification from the IRS, the PEO seeking certification must post a CPEO Bond guaranteeing the payment of federal employment taxes using Form 14751, Certified Professional Employer Organization Surety Bond, in the amount described in §301.7705-2T(g)(2). 

As prescribed by §301.7705-2T(g)(2)(i), the amount of the bond must be the greater of 5% of the CPEO’s liability under section 3511 of the Code during the preceding calendar year (up to $1 million) or $50,000.

Is a Surety Bond an insurance policy?

No.  A Surety Bond is a form of credit extended to you, and it is not insurance.  In traditional insurance, the risk is transferred to the insurance company.  In suretyship, the risk remains with the Principal.  You are the risk.  Again, the protection of the bond is for the Obligee.

Who does a Professional Employer Organization Bond protect?

The intent of the bond is to protect the Obligee/State and NOT the Principal/PEO. 

For assistance with PEO Bonds, please contact one of our License & Permit Bond specialists:

Stephen Beahm

Cappy Kehoe

Roxanne Craven

David Joseph

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A Final Note on PEO Bonds

Statutory bond requirements are expected to increase/change substantially through 2021, and we are ready to help you navigate new waters.  International Sureties has developed a low-cost surety bond program available to all qualified Professional Employer Organizations and those seeking IRS Certification.  We have the ability to place PEO and CPEO bonds in all jurisdictions, and help you reduce your compliance costs.