Vermont employee leasing company bonds.
From $1,000.
Vermont requires a licensed employee leasing company (PEO) to post financial security with the Department of Labor, generally a surety bond, under the employee leasing provisions of 21 V.S.A. chapter 13 and the Department’s rule. Premiums cost 1% of the bond amount.
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How much does a Vermont employee leasing company bond cost?
1% of the bond amount, from $1,000 at the $100,000 minimum. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No long underwriting queue for the standard PEO security bond — enter your amount, pay, and file with the Department of Labor. Here is the whole thing:
Apply online
Your company details, the bond amount your license requires, and the effective date — that is the application.
Issued
No credit check up to $50,000, and most applications approve instantly. Because these bonds run six figures.
File with the Department of Labor
Submit the executed bond to satisfy your employee leasing company license or renewal. Wet-ink originals mailed whenever the Department insists.
What it is and who needs it.
What the employee leasing bond actually covers
An employee leasing company — what most of the industry now calls a professional employer organization (PEO) — co-employs a client’s workforce and takes on payroll, payroll taxes, workers’ compensation, and unemployment contributions. Vermont licenses these companies through the Department of Labor and requires each to demonstrate financial responsibility.
The security backs the company’s obligation to actually pay the wages, benefits, and statutory contributions it collects on a client’s behalf. A surety bond is the most common form; the Department’s rule and the underlying statute also permit a letter of credit or other approved security, and the bond requirement may be waived for a company accredited by an approved national accrediting entity.
The required amount is the greater of $100,000 or 5% of the prior year’s total Vermont wages, benefits, workers’ compensation premiums or awards, and unemployment compensation contributions. A PEO may not make a client contribute toward the security. Enter the figure your filing requires; we price the bond from $1,000, and no credit check up to $50,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Labor. Submit the executed bond to satisfy your employee leasing company license or renewal. Wet-ink originals mailed whenever the Department insists.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $50,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, no credit check up to $50,000.
Submit the application with your required bond amount. Because these run six figures, larger amounts may get a brief underwriter review — usually within 48 hours.
Start the application →Common questions.
Other Vermont bonds.
Price and requirements checked on the carrier’s application, . Page updated .
PEO license waiting on one filing.
The bond issues the moment you pay — no credit check up to $50,000. Enter your required amount and file with the Department of Labor.