MI professional employer org bonds.
From $100. Enter your amount.
A Michigan professional employer organization must show $100,000 of working capital — or instead post a $100,000 bond (plus any deficit) to secure the wages, taxes, and benefits owed to covered employees. Pricing is 1% of the bond amount, $100 minimum — enter the amount LARA requires and your exact price appears.
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Enter your amount, pay, and file with LARA. Here is the whole thing:
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Your PEO details, the bond amount LARA requires, and the effective date — that is the entire application.
Issued
The standard $100,000 bond typically clears with a quick soft pull that never affects your score. Larger amounts that include a working-capital deficit may get an underwriter review, often within 48 hours.
File with LARA
Submit the executed bond with your PEO license application or renewal under the PEO Regulatory Act. Wet-ink originals mailed on request.
What it is and who needs it.
What the PEO bond actually secures
A professional employer organization (PEO) co-employs a client's workforce — running payroll, withholding taxes, and administering benefits. Michigan licenses PEOs under the Professional Employer Organization Regulatory Act (Act 370 of 2010), administered by LARA, and requires each PEO to demonstrate financial responsibility.
Under MCL 338.3735, a PEO must maintain at least $100,000 of positive working capital — or instead provide a bond, irrevocable letter of credit, or securities of at least $100,000. A PEO whose financial statements do not show positive working capital must post a bond of $100,000 plus an amount sufficient to cover the deficit.
The bond is held by a depository LARA designates to secure payment of all taxes, wages, benefits, and other entitlements owed to covered employees if the PEO fails to pay them when due. If the surety pays, the PEO repays the surety. We issue whatever amount LARA requires, with pricing from $100.
You need this bond if you are
One application, issued instantly.
Submit the application with the bond amount LARA requires — the executed bond is generated ready to file with your PEO license.
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Other Michigan bonds.
PEO bond, issued today.
Pricing from $100. Enter the amount LARA requires and file the same day.