Ohio Professional Employer Organization Bond

An Ohio Professional Employer Organization Bond, referred to as the Ohio PEO Surety Bond, is a type of surety bond required by the Ohio Bureau of Workers’ Compensation (BWC) from certain types of PEOs operating in the state. It’s essentially a financial guarantee that the PEO will fulfill its obligations to its client employers and the state, primarily regarding workers’ compensation premiums and related taxes. The bond amount is determined by the BWC based on the PEO’s financial condition and client payroll. Typically, it ranges from $10,000 to $50,000 or more.

The cost of the surety bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms. Ohio PEO Surety Bond Template

How to Get an Ohio Professional Employer Organization Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. ²
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Ohio Professional Employer Organization Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required}

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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What is an Ohio Professional Employer Organization (PEO)?

An Ohio Professional Employer Organization (PEO) is a company that provides a variety of human resource services to small and medium-sized businesses (SMBs) in the state. Think of them as a one-stop shop for all things HR, taking care of tasks like:

• Payroll administration: This includes processing payroll, calculating and paying taxes, and issuing paychecks and W-2s.
  

  

• Benefits administration: PEOs offer group health insurance, retirement plans, and other employee benefits to their clients’ employees.
• Human resources management: PEOs can handle tasks like recruiting and hiring, employee onboarding, performance management, and compliance with employment laws.
• Workers’ compensation administration: PEOs manage workers’ compensation claims and ensure that their clients are compliant with state regulations.

Ohio Professional Employer Organizations (PEOs) do not require a license in the traditional sense. However, they do need to register with the Ohio Bureau of Workers’ Compensation (BWC) and meet specific requirements to operate in the state. This registration process ensures certain standards are met to protect client employers and their employees.  If the PEO does not maintain a minimum level of positive working capital as determined by the BWC, it must post the Ohio Professional Employer Organization Bond.

How to Register as a PEO in Ohio

Registering a PEO in Ohio involves several steps and requirements to ensure compliance with the Ohio Bureau of Workers’ Compensation (BWC). Here’s a breakdown of the process:

1. Gather necessary documents:
   • Professional Employer Organization Registration Application (UA-1): You can obtain this form by contacting the BWC PEO Unit at (614) 466-6773.
   • Financial Statements: Provide your company’s audited financial statements for the previous three years.
   • Workers’ Compensation Policy: Proof of an active workers’ compensation policy from an authorized Ohio carrier.
   • Business Formation Documents: Articles of Incorporation, Bylaws, and any other relevant documents.
   • List of Officers and Directors: Names and titles of your company’s key personnel.

2. Determine if you need a PEO Surety Bond:
   • If your company’s current assets exceed current liabilities (positive working capital), you don’t need a bond.
   • If your working capital is negative, you must obtain a PEO Bond from a surety company authorized to do business in Ohio.
   • The bond amount will be determined by the BWC based on your financial condition and client payroll.

3. Submit your application:
   • Mail the completed UA-1 form, financial statements, and other required documents to the BWC PEO Unit at the address provided on the application.
   • Pay the $100 initial registration fee.

4. BWC review and approval:
   • The BWC will review your application and supporting documents.
   • If everything is in order, they will issue you a PEO Registration Certificate.
   • If they require additional information or clarification, they will contact you.

5. Ongoing compliance:
   • Once registered, you must comply with all applicable Ohio laws and regulations for PEOs, including:
   • Maintaining a minimum level of positive working capital.
   • Filing annual reports with the BWC.
   • Complying with workers’ compensation insurance requirements.
   • Paying all payroll taxes.
   • Submitting quarterly PEO reports to the BWC.
   • The BWC may conduct regular audits and inspections to ensure compliance.
   • Maintaining the Ohio Professional Employer Organization Bond if required.

Additional resources:

• Ohio Bureau of Workers’ Compensation PEO page: https://info.bwc.ohio.gov/for-employers/workers-compensation-coverage/managing-coverage-with-peos/client-policy-maintenance
• Chapter 4125 of the Ohio Revised Code: https://www.bwc.ohio.gov/employer//services/peo/policies.asp
• Sample PEO Surety Bond Form: https://www.bwc.ohio.gov/downloads/blankpdf/PEOSuretyBondTemplate.pdf

Note: This is a general overview of the registration process. Specific requirements and procedures may vary depending on your individual circumstances. It’s recommended to consult with an attorney or accountant specializing in PEOs in Ohio to ensure you comply with all legal and regulatory requirements.