What is a Wisconsin Unemployment Reserve Fund Bond?
For Wisconsin employers who are 501(c)(3) nonprofit organizations or Indian tribes, the Wisconsin Department of Workforce Development (DWD) requires the provision of a surety bond.
The Unemployment Reserve Fund guarantees that an employer electing reimbursement financing will pay the required reimbursement, along with interests and filing fees, to the unemployment reserve fund.
An unemployment reserve fund, managed by the Wisconsin DWD, maintains each employer account, where employers are subject to basic and solvency taxes. The Unemployment Insurance program grants benefits to qualified individuals who become unemployed.
What are the bond conditions?
- The bond must be issued by a Surety authorized to conduct business in the State of Wisconsin.
- This obligation is required because the principal has elected, under Wis. Stats. S. 108.151, to discharge its monetary commitments incurred under the Wisconsin Unemployment Insurance Law using reimbursement financing.
- The Principal, as mandated Wis. Stats. S108.151 (4)(a) to file a surety bond with the Treasurer of the Wisconsin Unemployment Reserve Fund to guarantee the payment of required reimbursements, together with any interest and any late filing fees.
- If the Principal will pay or cause to be paid to the Wisconsin Unemployment Reserve Fund the full amount of its reimbursement payments, when due, together with any interest and any late filing fees, then the bond obligation will be null and void; otherwise, it shall be in full force and effect.
- The surety’s total liability shall in no event exceed the amount of the bond.
What is the bond amount?
According to Wis. Stats. S 108.151(4)(a)1, the bond amount is equal to four percent of the employer’s payroll for the year “immediately preceding the effective date of the election, or the employer’s anticipated payroll for the current year, whichever is greater as determined by the Department.”
The bond may be in a higher amount at the option of the employer. The amount will similarly be pre-determined before the beginning of the third year commencing after the year in which it is filed and before the start of every other year.
The cost of the bond varies, depending on your credit score. It is a percentage of the bond amount, ranging from 1%-5%.
Know your bond costs by getting a FREE quote HERE!
How do I obtain an Unemployment Reserve Fund Bond?
Here’s a step-by-step guide to the bonding process that we have made easier so that you can get your bond in no time:
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Next, you will be asked to submit a few essential information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your copy of the BOND FORM, which can be obtained from the State Department of Workforce Development
To avoid any delays, please make sure that you have gathered the right information needed before submitting it.
Once the underwriting process is done, we will immediately issue your bond and send it to you right away!
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