Protecting Employees and Employers
When a company hires employees, it also takes on the responsibility of human resources duties. This can include handling employee benefits, payroll, taxes, workers’ compensation, risk/safety management, training, and development. Businesses that outsource the hiring and other HR tasks to an Employee Leasing Company can free up time and money, which allows them to focus on growing the company instead.
An Employee Leasing Company can also be known as a Professional Employer Service, Professional Employer Organization, Staff Leasing Company, and Registered Staff Leasing Company. It is different from temporary labor agencies in that temporary labor agencies typically hire day-to-day positions, and leasing companies staff employees for an extended basis and handle the HR responsibilities.
Surety Bond Requirement
Many states require Employee Leasing Companies to obtain a $100,000 surety bond for licensing or registration. A surety bond guarantees that the company will adhere to the rules and regulations of the state and pay wages due as stated in a contract.
In lieu of a bond, a state may accept a deposit of cash, an irrevocable letter of credit, or an audited financial statement prepared by an independent CPA showing a minimum net worth of at least $100,000.
How Do I Get an Employee Leasing Company Surety Bond?
SuretyGroup.com can help you get started. Our low rates start at 1% of the bond amount with good credit, and we offer free quotes that fit your specific situation. Call our Surety Bond Specialists at 844-432-6637 or email email@example.com.
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