South Carolina Professional Employer Organization Bond Guide
If you’re operating a professional employer organization in South Carolina, you may need this surety bond.
Bond Overview
- Purpose: To provide financial security and operational certainty for PEO clients
- Who Needs It: Providers of outsourced HR services without adequate net worth
- Regulating Body: The South Carolina Department of Consumer Affairs
- Required Coverage: $50,000
- Premium Rate: $500–$5,000, credit-based
Learn all about the bond requirements and process in this guide.
What Is a South Carolina Professional Employer Organization Bond?
A South Carolina 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 South Carolina Department of Consumer Affairs requires this bond as part of the licensing process to protect the state and PEO clients.
How Much Do PEO Bonds Cost in South Carolina?
South Carolina professional employer organization bonds cost a small percentage of the bond amount, typically 1–10% based on credit score.
Qualified applicants often pay just $500 for the $50,000 coverage. However, exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a PEO Bond?
The South Carolina Department of Consumer Affairs requires a PEO license for any business that provides long-term HR services — such as payroll processing, benefits administration or compliance support — for another company.
All applicants must also demonstrate a net worth of at least $50,000. If you do not meet the net worth requirement, you can submit a $50,000 surety bond instead as a financial guarantee.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a South Carolina 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 email you the bond shortly after purchase. Be sure to file the bond with the Department of Consumer Affairs as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a South Carolina 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 South Carolina Department of Consumer Affairs requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding South Carolina State Code Section 40-68-40.
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.
