Employee leasing company bond cost
The Georgia Department of Labor mandates that employee leasing companies post surety bonds in varying amounts prior to conducting business. The required bond amount is either $10,000 or 2.7%— whichever is greater— of the company’s taxable payroll for the 4 calendar quarters ending June 30 preceding the effective date of the bond.
The bond covers a minimum of 1 calendar year, as well as the remainder of the calendar year in which it is issued. If the employee leasing company is new and has no previous employment history, the required bond amount is $10,000. Applicants must verify their required bond amount with the state prior to bonding.
Why this bond
Employee leasing company bonds (also called professional employer organization bonds) in Georgia are put in place to ensure that principals (employee leasing companies) comply with all requirements and regulations of the Employment Security Law, including filing prompt and accurate reports.
If the principal fails to conduct business ethically and in accordance with the law, the bond protects harmed parties from resulting financial loss up to the full bond amount. The principal is responsible for reimbursing the surety for any damages paid out.
Employee leasing company bond details
The Georgia Department of Labor requires employee leasing companies to submit a surety bond. These bonds are valid for the remainder of the calendar year in which they are issued, as well as for 1 additional calendar year. Once the bond expires, the company must renew the bond in order for operations to continue.
Become an employee leasing agency
Employee leasing companies in Georgia are not required to obtain a license, but all companies must keep the following on record:
- Current list of all clients in Georgia
- Mailing addresses for all customers
- Listing of DOL registrations by DOL account number for the clients
- Records with employee wages and hours worked
- Federal employer identification number for all clients
- Names, residence addresses, social security numbers, ownership interests and positions of employment in the employee leasing company
These requirements are set by the Employment Security Law of the Georgia Department of Labor.
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