Alabama PEO registration bonds.
From $100.
Under the Alabama PEO Registration Act (Code of Alabama Title 25, Chapter 14), a Professional Employer Organization without enough equity must post a surety bond, commonly up to $100,000, backing the taxes and workers’ comp it owes for covered employees. The premium is 1% of the bond amount, $100 minimum.
Trusted by industry leaders
How much does an Alabama PEO registration bond cost?
1% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Your PEO registration is waiting on this bond. Here is the entire process:
Apply online
Your business details, the bond amount the Department requires, and the effective date — that is the application.
Issued on the spot
No credit check up to $50,000.
File with your registration
Submit the executed bond with your Alabama PEO registration. Wet-ink original on request.
What it is and who needs it.
What the PEO bond actually guarantees
A Professional Employer Organization co-employs a client's workers and runs their payroll, taxes, and benefits. Alabama registers PEOs under the Alabama Professional Employer Organization Registration Act (Code of Alabama Title 25, Chapter 14), which lets the Department condition registration on a financial showing.
When a PEO cannot prove enough net worth, it satisfies the requirement with a surety bond. The bond guarantees the PEO's payment of all unemployment taxes and workers' compensation amounts due for covered employees — so the people working under the PEO are protected if it fails to remit.
The Act caps the financial requirement at $100,000, and a PEO can meet it with audited net worth in lieu of a bond. The exact figure is set by the Department for your registration — confirm it, and we issue the bond; no credit check up to $50,000, premiums from $100 with your exact price at the application.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with your registration. Submit the executed bond with your Alabama PEO registration. Wet-ink original on request.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $50,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with your required bond amount — the executed bond is generated instantly, ready to file with your Alabama PEO registration.
Start the application →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
PEO bond, issued today.
From $100 — your exact price appears at the application. Enter the amount the Department requires and file with your registration the same day.