MI reimbursing employer bonds.
From $100.

When a Michigan nonprofit elects to be a reimbursing employer for unemployment, the Unemployment Insurance Agency can require a surety bond to secure the benefit costs it will repay dollar-for-dollar. Pricing is 1.5% of the bond amount, $100 minimum — one soft credit pull, never affecting your score.

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Required under §13a of the Michigan Employment Security Act (MCL 421.13a) when a reimbursing nonprofit's gross payroll exceeds $100,000

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Amount is set by the UIA — generally tied to a percentage of your annual gross payroll

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Soft credit pull only — never affects your score, and your exact price appears at the application

1.5% + $100 minpriced by your bond amountSoft pullnever affects your scoreInstantapproval for most

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How it works

Three steps to secured.

Your reimbursing election is waiting on this security. Here's the entire process:

TODAY · ONLINE

Apply once, online

Your organization details, the security amount the UIA set, and the effective date. The only extra step is a one-time consent to a soft credit pull.

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.

1–2 BUSINESS DAYS

File with the UIA

Pay online and receive the executed bond ready to file with the Unemployment Insurance Agency to secure your reimbursing election. Wet-ink originals mailed on request.

About this bond

What it is and who needs it.

What the reimbursing bond actually covers

Most employers pay unemployment contributions (a tax) into the state fund. A nonprofit can instead elect to be a reimbursing employer — paying the UIA back dollar-for-dollar for benefits actually charged to its account, rather than paying tax up front.

Because the state is carrying that risk, §13a of the Michigan Employment Security Act (MCL 421.13a) requires a reimbursing nonprofit that has, or expects to have, gross payroll over $100,000 in a calendar year to provide a surety bond, irrevocable letter of credit, or other security approved by the UIA, in an amount the agency determines.

The bond secures the benefit reimbursements you owe. If the surety pays the UIA because you do not, you repay the surety — it is a guarantee to the state, not insurance for your organization. Enter the amount the UIA set; pricing starts at $100 and clears with one soft credit pull.

MCL 421.13a (MES Act §13a)Section 13a of the Michigan Employment Security Act (MCL 421.13a) requires a nonprofit electing reimbursing status that has or expects gross payroll over $100,000 in a calendar year to provide a surety bond, irrevocable letter of credit, or other security approved by the Unemployment Insurance Agency, in an amount the UIA determines. UIA guidance has tied the security to a percentage of annual gross payroll — confirm your exact amount on your UIA notice.

You need this bond if you are

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A nonprofit electing reimbursing status with gross payroll over $100,000

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An already-reimbursing nonprofit the UIA has asked to post or update security

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Replacing a letter of credit with a surety bond approved by the UIA

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A tribe or tribal unit subject to the same reimbursing-employer security rules

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 typically issued within 1–2 business days.

Start the application →

FAQ

Common questions.

Why does the UIA require this bond?A reimbursing employer repays the UIA dollar-for-dollar for unemployment benefits charged to it, instead of paying tax up front. Under §13a of the MES Act, a reimbursing nonprofit with gross payroll over $100,000 must post security so the state is protected if those reimbursements go unpaid.

How much is it?Pricing is 1.5% of the bond amount, with a $100 minimum — not a credit tier. The bond amount itself is set by the UIA and is generally tied to a percentage of your annual gross payroll. Enter that figure at the application and your exact price appears.

Is there a credit check?Yes — one soft credit pull, which never affects your score. It informs approval, not price: your bond is always 1.5% of the amount, $100 minimum, never a flat rate. Your exact price appears at application.

Can I use a letter of credit instead?Section 13a accepts a surety bond, an irrevocable letter of credit, or another security the UIA approves. A surety bond is usually the cheapest — you pay a premium rather than tying up the full amount with your bank.

When does it renew?This bond follows the UIA's statutory renewal cycle (it renews at year-end based on the term you select). We track it and send renewal notices ahead of expiration so your reimbursing election stays secured.

Related bonds

Other Michigan bonds.

Reimbursing employer bond, secured today.

Pricing from $100, soft pull only. Enter the amount the UIA set and file in 1–2 business days.

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Your premiumfrom $100

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