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.
















Your PEO registration is waiting on this bond. Here is the entire process:
Your business details, the bond amount the Department requires, and the effective date — that is the entire application.
No credit check and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.
Submit the executed bond with your Alabama PEO registration. Wet-ink original on request.
Bond amount × 3% = your premium, one-time, $275 minimum. Enter the figure the Department requires and the premium updates.
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.
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 →If yours isn't here, the bond team can usually answer within the hour.
Five-minute application, flat 3%, $275 minimum. Enter the amount the Department requires and file with your registration the same day.