A 501(c)(3) employer in Alabama can elect to reimburse the unemployment fund for benefits paid, instead of paying regular contributions. When it does, the Department of Labor can require a surety bond under Code of Ala. § 25-4-51. The Department sets the amount; the price is 2% of the bond amount, $100 minimum — the application collects no credit information, and your exact price appears at the application.
















No underwriting queue for the standard UC bond — enter your amount, pay, and file with the Department of Labor. Here is the whole thing:
Your organization details, the bond amount the Department required, and the effective date — that is the entire application.
No credit fields on this application, and no waiting — the executed bond is generated as soon as you pay. If a check ever runs on a larger amount, it is a quick soft pull that will not affect your score.
Submit the executed bond to satisfy your reimbursement election. Wet-ink originals mailed whenever they insist on them.
Most Alabama employers pay quarterly unemployment contributions at an experience-rated tax rate. A 501(c)(3) non-profit has a second option under Code of Ala. § 25-4-51: it can elect to reimburse the fund dollar-for-dollar for benefits actually paid to its former employees, rather than pay contributions in advance.
Because the state is then carrying the timing risk, the Department of Labor can require a surety bond, cash deposit, or interest-bearing deposit from a reimbursing non-profit. The bond guarantees the organization will cover the benefit charges it is responsible for.
The amount is set by the Department from your taxable payroll at the rate the statute prescribes (§ 25-4-51(b)(7)), so it scales with your workforce. If a reimbursing employer fails to pay, the state recovers against the bond — and if the surety pays, the employer repays the surety. Enter the figure on your notice and we issue it — premiums are 2% of the bond amount, $100 minimum.
Submit the application with the bond amount the Department of Labor set — the executed bond is generated instantly, ready to file.
Start the application →2% of the bond amount, $100 minimum. Enter the amount the Department required and file the same day.