In August 2018, the Massachusetts General Assembly passed House Bill 4732 requiring a Massachusetts professional employer organization bond and from sector participants. The new law requires the PEO to provide the Department of Labor with audited financial statements, in accordance with generally accepted accounting principles (GAAP) and prepared by a certified public accountant. The statements must be without qualification as to the going concern status of the PEO and must show positive working capital. ABSENCE of appropriate levels of working capital invokes the financial assurance (PEO bond) provision.
The Massachusetts PEO bond must be written in the amount of two hundred fifty thousand dollars ($250,000) PLUS the working capital deficiency evidenced by the PEO's financial statment. The surety bond must be manuscripted in a form acceptable to the Director of the Department of Labor Standards and must remain in full force and effect while the license remains active or while any obligations and/or liabilities of the PEO remain outstanding. The surety bond runs to the Department of Labor Standards and secures the payment by the PEO of all taxes, wages, benefits, or other entitlements due to or with respect to covered employees. Application materials and Massachusetts PEO bond should be directed to:
Massachusetts Department of Labor Standards
19 Staniford Street, 2nd Floor
Boston, MA 02114
Massachusetts recognizes the federal certified PEO (CPEO) designation. Learn more about the U.S. CPEO bond here.
Massachusetts surety bond leader, Surety One, Inc. offers PEO bonds in all jurisdictions where required by law. We are a surety-focused general agency licensed in all fifty states, Puerto Rico, U.S. Virgin Islands and Canada. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for more information about a Massachusetts PEO bond or any surety bonding need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.