AL PEO registration bonds.
Flat 3%. Enter your amount.

Alabama registers Professional Employer Organizations under the Alabama PEO Registration Act (Code of Alabama Title 25, Chapter 14). A PEO that does not show enough equity must post a surety bond — commonly up to $100,000 — backing the payroll taxes and workers’ comp it owes for covered employees. We issue it at a flat 3% with no credit check.

Required to register as a PEO in Alabama under Code of Alabama Title 25, Chapter 14
Backs unemployment taxes and workers’ comp due for covered employees — commonly up to $100,000
Flat 3%, no credit pull — enter your required amount and the premium updates
Flat 3%of your bond amount$275minimum premiumNo creditcheck to issue
Trusted by industry leaders
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NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Apply to filed in one sitting.

Your PEO registration is waiting on this bond. Here is the entire process:

TODAY · 5 MINUTES

Apply online

Your business details, the bond amount the Department requires, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

No credit check and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with your registration

Submit the executed bond with your Alabama PEO registration. Wet-ink original on request.

The whole pricing page.

Bond amount × 3% = your premium, one-time, $275 minimum. Enter the figure the Department requires and the premium updates.

$50,000 bond
$1,500
$100,000 bond
$3,000
$150,000 bond
$4,500
About this bond

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 at a flat 3% with no credit check.

Alabama PEO Registration Act — Code of Alabama Title 25, Ch. 14Under the Alabama Professional Employer Organization Registration Act (Code of Alabama Title 25, Chapter 14), the Department may require a PEO to guarantee payment of unemployment taxes and workers' compensation amounts due for covered employees; the financial requirement is capped at $100,000 and may be satisfied by audited net worth in lieu of a surety bond. Confirm the figure the Department set for your registration.

You need this bond if you are

Registering as a PEO in Alabama and cannot prove the equivalent net worth
Renewing a PEO registration that requires you to keep the bond active
A PEO group meeting the financial requirement with a bond rather than equity
Entering Alabama as a PEO from another state

Five minutes, 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 →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

Who requires this bond? +
The State of Alabama, under the Alabama Professional Employer Organization Registration Act (Code of Alabama Title 25, Chapter 14), as part of PEO registration. A PEO that proves enough net worth may not need a bond at all.
How much is it? +
A flat 3% of the bond amount, with a $275 minimum. The Act caps the financial requirement at $100,000 — so a $100,000 bond is $3,000. Enter the figure the Department set for your registration and the quote updates.
Can I use net worth instead of a bond? +
Yes. The Act lets a PEO satisfy the financial requirement with audited net worth in lieu of a surety bond. The bond is the route for PEOs that cannot show the equivalent equity.
Is there a credit check? +
No — the PEO bond is issued with no credit pull. Larger bond amounts may get a quick soft-pull review, which never affects your credit score.
What does the bond guarantee? +
Payment of the unemployment taxes and workers' compensation amounts the PEO owes for covered employees. If the PEO fails to remit, the state or a covered employee can recover against the bond — and if the surety pays, the PEO repays the surety.
Related bonds

Other New York bonds.

PEO bond, issued today.

Five-minute application, flat 3%, $275 minimum. Enter the amount the Department requires and file with your registration the same day.

Your premium @ 3%$3,000
Apply now →