Massachusetts Professional Employer Organization Bond Guide
If you’re opening a professional employer organization in Massachusetts, you’ll likely need this surety bond.
Bond Overview
- Purpose: To provide financial security and operational certainty for PEO clients
- Who Needs It: PEOs without $250,000 positive working capital
- Regulating Body: The Executive Office of Labor and Workforce Development
- Required Coverage: $250,000
- Premium Rate: 1–10% based on credit score
Learn all about the bond requirements and process in this guide.
What Is a Massachusetts Professional Employer Organization Bond?
A Massachusetts professional employer organization (PEO) surety bond holds PEOs liable for the following:
- Meeting state regulations and licensing requirements
- Handling worker’s compensation policies properly
- Managing payroll services responsibly
- Fulfilling employer contracts
The Massachusetts Office of Labor and Workforce Development requires this bond as part of the licensing process to protect the state and PEO clients.
How Much Do PEO Bonds Cost in Massachusetts?
Massachusetts professional employer organization bonds cost a small percentage of the bond amount, typically 1–10% based on credit score.
For example, rates start at $2,500 for applicants with excellent credit scores. Apply for your free, personalized quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a PEO Bond?
The Massachusetts Executive Office of Labor and Workforce Development requires a PEO license for any business that provides outsourced HR services, such as:
- Payroll processing
- Benefits administration
- Worker’s compensation coverage
- HR compliance
All applicants must also demonstrate positive working capital of at least $250,000. If you do not meet the financial requirements, you can submit a surety bond to prove financial security.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Massachusetts professional employer organization bond.
Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file the bond with the Office of Labor and Workforce Development as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Massachusetts Professional Employer Organization Bond Work?
As with all surety bonds, a PEO bond creates a legal contract between three parties:
- Principal: You, the professional employer organization filing the bond
- Obligee: The Executive Office of Labor and Workforce Development requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding Massachusetts General Laws Chapter 149, §192-203.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your PEO bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
