Michigan professional employer org bonds.
From $1,000.

A Michigan professional employer organization must show $100,000 of working capital — or instead post a $100,000 bond (plus any deficit) to secure the wages, taxes, and benefits owed to covered employees. Pricing is 1% of the bond amount — enter the amount LARA requires and your exact price appears.

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Required under the PEO Regulatory Act (Act 370 of 2010), MCL 338.3735 — administered by LARA

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A PEO without positive working capital posts a $100,000 bond plus any working-capital deficit

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1% of the bond amount — enter your required amount and see your exact price at application

1% ratepriced by your bond amountNo credit reviewnot even a soft pullA-ratedA.M. Best carriers

Trusted by industry leaders

How it works

Three steps. One sitting.

Enter your amount, pay, and file with LARA. Here is the whole thing:

TODAY · ONLINE

Apply online

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

SAME DAY, USUALLY

Issued

Larger amounts that include a working-capital deficit may get an underwriter review, often within 48 hours.

SAME DAY

File with LARA

Submit the executed bond with your PEO license application or renewal under the PEO Regulatory Act. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the PEO bond actually secures

A professional employer organization (PEO) co-employs a client's workforce — running payroll, withholding taxes, and administering benefits. Michigan licenses PEOs under the Professional Employer Organization Regulatory Act (Act 370 of 2010), administered by LARA, and requires each PEO to demonstrate financial responsibility.

Under MCL 338.3735, a PEO must maintain at least $100,000 of positive working capital — or instead provide a bond, irrevocable letter of credit, or securities of at least $100,000. A PEO whose financial statements do not show positive working capital must post a bond of $100,000 plus an amount sufficient to cover the deficit.

The bond is held by a depository LARA designates to secure payment of all taxes, wages, benefits, and other entitlements owed to covered employees if the PEO fails to pay them when due. If the surety pays, the PEO repays the surety. We issue whatever amount LARA requires, with pricing from $1,000.

MCL 338.3735 (PEO Regulatory Act)Under the Michigan Professional Employer Organization Regulatory Act (Act 370 of 2010), MCL 338.3735, a PEO must maintain at least $100,000 in working capital or provide a bond, irrevocable letter of credit, or securities of at least $100,000. A PEO without positive working capital must post a bond of $100,000 plus an amount sufficient to cover the deficit, held to secure wages, taxes, benefits, and other entitlements due to covered employees. Confirm your required amount with LARA.

You need this bond if you are

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A PEO applying for a Michigan license that elects a bond instead of showing working capital

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A PEO without positive working capital posting $100,000 plus the deficit

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Renewing a PEO license and refreshing your financial-assurance bond

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A PEO group meeting the combined working-capital requirement with a bond

One application, issued instantly.

Submit the application with the bond amount LARA requires — the executed bond is generated ready to file with your PEO license.

Start the application →

FAQ

Common questions.

How much is the Michigan PEO bond?Pricing is 1% of the bond amount — not a credit or underwriting tier. The base bond amount is $100,000; a PEO with a working-capital deficit posts $100,000 plus the deficit, and your exact price appears at the application.

Do I have to post a bond?Not always. Under MCL 338.3735 a PEO can satisfy the requirement with $100,000 of positive working capital instead. The bond (or a letter of credit or securities) is the alternative when you do not show that working capital — and is required at $100,000 plus the deficit if your statements show a shortfall.

What does the bond secure?It secures payment of all taxes, wages, benefits, and other entitlements owed to covered employees if the PEO does not pay them when due. The bond is held by a depository LARA designates.

Is there a credit check?The application collects no credit information — there's no credit section at all.

Where do I file it?With LARA, as part of your PEO license application or renewal under the PEO Regulatory Act. We issue the executed bond ready to submit. The bond requirement is set by MCL 338.3735.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

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PEO bond, issued today.

Pricing from $1,000. Enter the amount LARA requires and file the same day.

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