How much does a New York nail salon wage payment bond cost?
New York’s Department of State requires all nail salon owners in the state to file a wage payment bond. Since these are credit-based bonds, underwriters will have to review the application before determining the cost. Having financial documents ready at the time of applying will help expedite the bonding process. The cost of wage payment bonds for nail salons starts at 2% of the total bond amount for highly qualified applicants.
Nail salon owners employing the equivalent of 2-5 full-time individuals providing nail specialty services must file a bond of at least $25,000. Owners with 6-10 full-time employees (or equivalent) must secure a $40,000 bond. Owners with 11-25 full-time employees are required to file a $75,000 bond. Owners with more than 25 full-time employees must secure a bond of at least $125,000.
|Bond Type||Bond Amount||Cost*|
|$25,000 Nail Salon Wage Bond 2-5 full-time employees||$25,000||Starts at $500||Apply Now|
|$40,000 Nail Salon Wage Bond 6-10 full-time employees||$40,000||Starts at $800||Apply Now|
|$75,000 Nail Salon Wage Bond 11-25 full-time employees||$75,000||Starts at $1,500||Apply Now|
|$125,000 Nail Salon Wage Bond 26+ full-time employees||$125,000||Starts at $2,500||Apply Now|
Why do I need this bond?
New York wage payment bonds exist to ensure nail salon owners pay their employees earned wages and provide them with due fringe benefits. As long as the employer pays his or her employees all of their due wages and benefits in full, this bond is void. However, if the owner fails to adhere to the terms of this bond, the bond is subject to valid claims filed against it.
In the event of a valid claim, the surety will cover for all damages up to the penal sum of the bond. The nail salon owner must then reimburse the surety the equivalent amount of money according to the indemnification agreement.
How to become a nail salon in New York
New nail salons and area renters must obtain a license before they can commence business operations. Anyone 18 or older can apply for an appearance enhancement business license. Proof of surety bond will be required to be approved for license. Appearance enhancement business licenses include the following information:
- business structure (corporation, partnership, etc.)
- applicant’s name, address, SSN or Federal Taxpayer ID
- business name and address
Application fees are $60. Appearance enhancement business licenses remain valid for 4 years from the date of issue. Applicants are encouraged to use the NYS License Center online for applications and renewals. For more licensing information, check out the “Additional Resources” section below.