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Michigan
Unemployment Bond

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Term Length: 1 year
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Michigan Unemployment Compensation Bond Guide

If you’re a new nonprofit in Michigan, you may need this surety bond. 

Bond Overview

  • Purpose: To guarantee payment of unemployment contributions and taxes
  • Who Needs It: New nonprofit employers that choose reimbursement rather than paying unemployment taxes
  • Regulating Body: The Michigan Department of Licensing and Regulatory Affairs
  • Required Coverage: $1,000–$25,000
  • Premium Rate: 1.5–10%, credit-based

Learn all about the bond requirements and process in this guide. 

What Is a Michigan Unemployment Compensation Bond?

A Michigan unemployment compensation bond is required for nonprofit organizations that opt into the reimbursement method for financing unemployment coverage.

The bond amount will be calculated as the greater of the following:

  • 4% of the total gross wage payments from the last 12-month period ending on June 30
  • 4% of the total gross anticipated wages for the current year
  • 4% of estimated payroll based on the information available

How Much Do Unemployment Compensation Bonds Cost?

Michigan unemployment compensation bonds cost a small percentage of the required coverage amount, typically 1.5–10%.


Exact rates vary based on personal credit score. Apply for your free quote now!

Bond Type
$1,000-$25,000Unemployment Bond

SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. 

Who Needs a Unemployment Compensation Bond? 

This bond is part of the licensing process for any newly liable nonprofit that elects to make reimbursed unemployment compensation payments versus paying taxes.

The Michigan Department of Licensing and Regulatory Affairs requires either the surety bond, an irrevocable letter of credit, or another accepted form of financial security. 

Organizations must hold a bond for the first three years of operations. After that, the Commission will determine if the bond is still necessary or not. 

How Do I Get My Bond?

SuretyBonds.com provides the fastest and easiest way to get a Michigan unemployment compensation bond. Just follow these quick steps: 

  1. Apply: Submit an online quote request form
  2. Quote: Receive your quote within one day
  3. Sign: Complete the indemnity agreement 
  4. Buy: Purchase the bond online 24/7

We’ll mail you the bond via your preferred shipping method. Be sure to file it as instructed. 

If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance. 

How Does a Michigan Unemployment Compensation Bond Work? 

An unemployment compensation bond creates a legal contract between these three parties: 

  1. Principal: You, the employer filing the bond
  2. Obligee: The Michigan Department of Licensing and Regulatory Affairs requiring the bond
  3. Surety: The provider issuing the bond

This holds you financially responsible for upholding the provisions of the Michigan Employment Security Act. 

If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety. 

How Do I Renew My Bond?

These bonds expire annually. To renew your unemployment compensation bond, simply pay your renewal invoice when prompted. 


After renewing, you’ll receive a continuation certificate to file with the as proof of ongoing coverage.

Call 1 (800) 308-4358 to talk with a Surety Expert

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