MI unemployment compensation bonds.
Flat 3%. Enter your amount.

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 amount is roughly 4% of gross annual payroll; we issue the bond at a flat 3% 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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Soft credit pull only — never affects your score, and the rate stays a flat 3% either way

Flat 3%of your bond amount$275minimum premiumSoft pullnever affects your score

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How it works

Apply to filed in one sitting.

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

TODAY · 5 MINUTES

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.

WITHIN 48 HOURS

Reviewed & approved

Most clear quickly; if underwriting needs anything, you hear from an underwriter within 48 hours. The credit check is a soft pull that never affects your score.

SAME / NEXT 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.

The whole pricing page.

Bond amount × 3% = your premium, $275 minimum, with the price varying by the total term you select. Enter the figure the UIA set and the premium updates.

$5,000 bond

$275

$10,000 bond

$300

$25,000 bond

$750

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, and we issue at a flat 3% 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

Five minutes. The whole thing.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is typically issued within 1–2 business days.

Start the application →

FAQs

Common questions.

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

How much is the Michigan unemployment compensation bond? +

The premium is a flat 3% of the bond amount, with a $275 minimum, and it varies by 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 the quote updates.

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, since you pay the 3% premium 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, not price. The rate is a flat 3% either way: credit can affect whether we approve the bond, never what it costs.

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.

Related bonds

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Unemployment compensation bond, issued this week.

Five-minute application, flat 3%, $275 minimum, soft pull only. Enter the amount the UIA set and file it.

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Your premium @ 3%$300

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