AL non-profit UC bonds.
From $100. Enter your amount.

A 501(c)(3) employer in Alabama can elect to reimburse the unemployment fund for benefits paid, instead of paying regular contributions. When it does, the Department of Labor can require a surety bond under Code of Ala. § 25-4-51. The Department sets the amount; the price is 2% of the bond amount, $100 minimum — the application collects no credit information, and your exact price appears at the application.

Required when a non-profit elects the reimbursement method under Code of Ala. § 25-4-51
Amount set by the Alabama Department of Labor — tied to your wages and the statutory rate
2% of the bond amount, $100 minimum — no credit fields in the application; enter the amount the Department required
2% of amount$100 minimumExactprice shown at the applicationNo credit reviewnot even a soft pull
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Triple Five
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How it works

Apply to issued in one sitting.

No underwriting queue for the standard UC bond — enter your amount, pay, and file with the Department of Labor. Here is the whole thing:

TODAY · ONLINE

Apply online

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

INSTANTLY

Issued on the spot

No credit fields on this application, and no waiting — the executed bond is generated as soon as you pay. If a check ever runs on a larger amount, it is a quick soft pull that will not affect your score.

SAME DAY

File with the Department of Labor

Submit the executed bond to satisfy your reimbursement election. Wet-ink originals mailed whenever they insist on them.

About this bond

What it is and who needs it.

What the UC bond actually covers

Most Alabama employers pay quarterly unemployment contributions at an experience-rated tax rate. A 501(c)(3) non-profit has a second option under Code of Ala. § 25-4-51: it can elect to reimburse the fund dollar-for-dollar for benefits actually paid to its former employees, rather than pay contributions in advance.

Because the state is then carrying the timing risk, the Department of Labor can require a surety bond, cash deposit, or interest-bearing deposit from a reimbursing non-profit. The bond guarantees the organization will cover the benefit charges it is responsible for.

The amount is set by the Department from your taxable payroll at the rate the statute prescribes (§ 25-4-51(b)(7)), so it scales with your workforce. If a reimbursing employer fails to pay, the state recovers against the bond — and if the surety pays, the employer repays the surety. Enter the figure on your notice and we issue it — premiums are 2% of the bond amount, $100 minimum.

Code of Ala. § 25-4-51(b)(7)Under Code of Alabama 1975 § 25-4-51, a non-profit organization that elects to make payments in lieu of contributions (the reimbursement method) may be required by the Department of Labor to post a surety bond, cash deposit, or interest-bearing deposit. The bond amount is computed from taxable wages at the rate prescribed in § 25-4-51(b)(7)a and is not in excess of that statutory rate. Confirm the amount on your Department of Labor notice.

You need this bond if you are

A 501(c)(3) non-profit electing the reimbursement method instead of paying contributions
A church, school, or charity employer the Department of Labor has asked to post security
Renewing or revalidating a reimbursement election that requires a bond on file
Switching from contributions to reimbursement and posting the required security

One application, issued on the spot.

Submit the application with the bond amount the Department of Labor set — the executed bond is generated instantly, ready to file.

Start the application →
FAQ

Common questions.

How much is the Alabama non-profit unemployment bond?Premiums are 2% of the bond amount, $100 minimum — the price is set by the amount you enter. The amount itself is set by the Department of Labor from your taxable wages at the statutory rate, so it scales with your payroll. Enter the figure on your notice; your exact price appears at the application.
When do I need this bond?When your non-profit elects to reimburse the unemployment fund in lieu of paying contributions, the Department of Labor can require a bond (or cash/interest-bearing deposit) to secure that election under § 25-4-51.
Is there a credit check?The application collects no credit information, and most bonds at this size approve instantly. If a check ever runs — typically only on larger amounts — it is a soft pull that never affects your score.
Can I post cash instead of a bond?The statute accepts a surety bond, a cash deposit, or an interest-bearing deposit. A surety bond is usually cheapest — you pay a small premium rather than tying up the full amount in cash.
Where do I file it?With the Alabama Department of Labor, which administers unemployment compensation tax. We issue the executed bond ready to submit with your reimbursement election.
Related bonds

Other Alabama bonds.

UC bond, issued today.

2% of the bond amount, $100 minimum. Enter the amount the Department required and file the same day.

Your premiumfrom $100
Apply now →