Michigan unemployment compensation bonds.
From $100.

A reimbursing employer in Michigan — typically a nonprofit, Indian tribe, or tribal unit — may have to post a security bond with the Unemployment Insurance Agency under the Michigan Employment Security Act. The bond amount is roughly 4% of gross annual payroll; pricing on that amount is 1.5% of the bond amount, $100 minimum, with a soft credit pull only.

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For reimbursing employers (nonprofits, Indian tribes, tribal units) under the Michigan Employment Security Act

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Generally required when gross annual payroll meets or exceeds $100,000 — sized at about 4% of that payroll

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Priced at 1.5% of the bond amount, $100 minimum — a soft credit pull that never affects your score confirms your exact price

1.5% of amount$100 minimum, checkout-verifiedSoft pullnever a hard inquiryExact pricebefore you pay

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How it works

Three steps. One sitting.

Enter your amount, consent to a soft credit pull, and file with the UIA. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount the UIA set, and the effective date — that is the application, plus a one-time soft-pull consent.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

SAME DAY

File with the UIA

Receive the executed bond ready to file with the Unemployment Insurance Agency. This bond is subject to statutory renewal dates (the term you select renews on 12/31). Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the unemployment bond actually covers

Under the Michigan Employment Security Act (Act 1 of 1936, Ch. 421), certain employers — nonprofits, federally recognized Indian tribes, and tribal units — can elect to be reimbursing employers rather than paying unemployment taxes. A reimbursing employer repays the UIA dollar-for-dollar for unemployment benefits paid to its former workers.

Because the state advances those benefits, the UIA can require a reimbursing employer to post security. In practice, a reimbursing employer whose gross annual payroll meets or exceeds $100,000 is generally subject to a security requirement of about 4% of that payroll, satisfied by a surety bond or letter of credit.

The bond guarantees that the UIA is repaid for benefits it pays out on your account. If you fail to reimburse, the UIA can recover against the bond; if the surety pays, you repay the surety. The bond is subject to statutory renewal dates — the term you select renews at year-end. Enter the amount the UIA set — pricing starts from $100 with a soft credit pull only.

Michigan Employment Security Act (Act 1 of 1936, Ch. 421)Under the Michigan Employment Security Act (Act 1 of 1936, MCL 421.1 et seq.), nonprofits, Indian tribes, and tribal units may elect reimbursing-employer status and must repay the UIA dollar-for-dollar for benefits paid. A reimbursing employer with gross annual payroll of $100,000 or more is generally subject to a security requirement of about 4% of payroll, met by a surety bond or letter of credit. Confirm your required amount on your UIA determination.

You need this bond if you are

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A nonprofit reimbursing employer with gross annual payroll at or above $100,000

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An Indian tribe or tribal unit electing reimbursing status with the UIA

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Posting UIA-required security in place of paying unemployment contributions

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Renewing your bond on the statutory year-end renewal cycle

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

How much is the Michigan unemployment compensation bond?The bond is priced at 1.5% of the bond amount, $100 minimum, times the total term you select. The bond amount itself is set by the UIA — generally about 4% of your gross annual payroll. Enter that figure and your exact price appears at the application.

Who has to post this bond?Reimbursing employers — nonprofits, Indian tribes, and tribal units — under the Michigan Employment Security Act. A reimbursing employer with gross annual payroll of $100,000 or more is generally subject to a roughly 4%-of-payroll security requirement.

Can I use a letter of credit instead?Yes — the UIA accepts either a surety bond or a letter of credit as security. A surety bond is usually cheaper, priced at 1.5% of the bond amount, $100 minimum, rather than tying up the full amount at a bank.

Is there a credit check?Yes — one soft credit pull, which never affects your score. It informs approval only, and your exact price appears at the application.

When does it renew?This bond is subject to statutory renewal dates — depending on the term you select, it renews at year-end (12/31). We send renewal notices ahead of the deadline so your reimbursing-employer status stays in good standing.

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.

Related bonds

Other Michigan bonds.

Unemployment compensation bond, issued today.

Pricing from $100, soft pull only. Enter the amount the UIA set and file it.

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