Payroll Processor Surety Bond

A Payroll Processor surety bond is a license and permit surety bond required by government agencies to receive a license within that jurisdiction for providing third party payroll processing. Payroll processors provide many of the following services to employers: preparing and issuing payroll checks; preparing and filing state and federal income withholding taxes reports and unemployment insurance contribution reports; or collecting, holding and turning over to the states income withholding taxes or unemployment insurance contributions. The bond provides security that the payroll processor will operate according to the applicable laws and pay the taxes payable to the licensing jurisdiction for the employers they service.