License & Permit

Payroll Processor Bond

A bond a payroll service files with the state to guarantee it will pay over the payroll taxes it handles for its employer clients.

Required by

State licensing or tax agencies in states that license payroll processors

Bond amount

Set by whoever requires the bond. We confirm it.

What this bond guarantees

The bond promises the state (the obligee) that the payroll processor will remit employer and employee taxes and unemployment premiums it collects. If the processor fails to pay them, the state or a harmed employer can claim against the bond.

Who needs it

• Payroll service companies
• Bookkeeping firms that remit payroll taxes for clients

What the underwriter looks at

• Volume of tax payments processed
• Business financial statements
• Owner credit

Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.

Common questions