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Texas Professional Employer Organization Bond

How much does a professional employer bond cost in Texas?

If you own or operate a professional employer organization in Texas, you must post a surety bond. The required amount of your bond depends on the number of covered employees your organization currently employs. Covered employees are individuals who have a co-employment relationship with a client and a professional employer organization. If you employ less than 250 covered employees, your posted bond amount must be $50,000. If you have 250 to 750 covered employees, you must post a $75,000 bond. If you have more than 750 covered employees, you must post a bond in the amount of $100,000.

Texas professional employer bonds used to be called staff leasing service bonds. The Texas Department of Licensing and Regulation updated the administrative rules on November 21, 2013 to implement changes in the PEO law created by Senate Bill 1286. The amended professional employer organization rules took effect January 1, 2014.

The price you’ll pay for your surety bonds is based on a review of your personal credit report as well as on your required bond amount. Request your free bond quote now!

Bond Type Bond Amount Cost by Credit Score*
680 and up 679 - 600 599 or lower
Professional Employer Organization Bond Less than 250 covered employees $50,000 Starts at $1,000 $2,00-4,000 $5,000+ Apply Now
Professional Employer Organization Bond 250-750 covered employees $75,000 Starts at $1,500 $3,000-6,000 $7,500+ Apply Now
Professional Employer Organization Bond More than 750 covered employees $100,000 Starts at $2,000 $4,000-8,000 $10,000+ Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

Enjoy fast, easy and accurate bond services when you work with the experts at SuretyBonds.com. Submit a bond request or call 1 (800) 308-4358 to get started!

Why do I need this bond?

By posting a Texas professional employer organization bond, principals (professional employer organizations) pledge to conduct business in compliance with Chapter 91 of the Labor Code and with all rules and regulations of the Texas Department of Licensing and Regulation. The bond protects any party who is injured as a result of the principal’s violations of these terms. The principal must reimburse the surety for all damages paid out.

Rely on SuretyBonds.com to handle all of your Texas surety bond needs. Begin our fast and easy bonding process by submitting a no-strings-attached bond request now!

What’s the fine print?

PEO bonds in Texas remain in full force and effect until canceled or violated. The surety can cancel the bond at any time by giving written notice of cancellation to the Texas Department of License and Regulation at least 60 days prior to the effective cancellation date.

How to start a professional employer organization in Texas

On November 21, 2013, the Texas Commission of Licensing and Regulation approved a reduction in the initial license and renewal fees for the Professional Employer Organizations program (formerly Staff Leasing Services). The following fee reductions took effect January 1, 2014, for initial applications and February 1, 2014, for renewals. The $150 non-refundable application is not included in the list below.

  • PEO Company with 0-249 assigned employees: initial or renewal license fee of $150
  • PEO Company with 250-749 assigned employees: initial or renewal license fee of $300
  • PEO Company with 750 or more assigned employees: initial or renewal license fee of $550
  • Limited License: initial or renewal license fee of $150

Take the first step toward becoming licensed in Texas by purchasing the surety bond you need quickly and easily!

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Texas Professional Employer Organizations Bond Form

Texas Department of Licensing and Regulation Professional Employer Organizations

Texas Department of Licensing and Regulation Professional Employer Organizations Labor Code

Texas Department of Licensing and Regulation Professional Employer Organizations Forms

Professional Employer Organizations Administrative Rules

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