New Jersey Temporary Help Service Bond

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The New Jersey Temporary Help Service Firm Bond Amount

The bond amount is maximum financial protection available to individuals who have been purposefully and financially harmed by the firm for financial obligations withheld. This is explained in detail in the next section.

The New Jersey Division of Consumer Affairs set the minimum required bond amount at $200,000.

From our experience this minimum will be the bond amount in most circumstances. If your firm is larger than most and you're placing a larger number of people into positions of employment, it's likely the Director will require a larger amount.

You will be told if you need to purchase a larger amount. It will not be a surprise.

 

Why is a New Jersey Temporary Help Service Bond Required?

Temporary help service firms are responsible for collecting the fees and wages owed to the people they place in employment positions.

Once these wages are collected, it's their responsibility to ensure each individual is paid the correct amount of all earned obligations.

These obligations can include:

• Wages for hours worked
• Interest on wages if owed
• Fringe benefits
• Any type of financial or benefit owed according to their contract

If the temporary help service firm purposefully fails to fulfill their obligations to the employees they place, the employee or employees can make a claim against the surety bond for compensation owed to them.

The total amount of all claims, including any single claim, is capped at the bond amount. In most cases this will be the $200,000 amount.

Bottom line, this surety bond requirement holds temporary help service firms accountable to their financial responsibilities owed to their temp employees.

 

How Much Does a $200,000 Temporary Service Firm Bond Cost?

Because of the high bond amount and past assessment of risk with temporary service firms across New Jersey, these bonds are credit driven.

A credit driven bond means the three main factors are going to influence the price.

These primary factors are:

• Personal credit or owner and owners
• Employment and personnel services industry and experience
• The bond history of the owner or owner if they've been bonded in the past

An insurance company, called a surety, will assess these factors and determine a rate they're comfortable with.

This is how you can potentially save thousands of dollars purchasing your surety bond.

Every surety is different in how they assess and determine their rate. Everyday we see different sureties come back with rates that are 1%... 2%... even 3% different.

Let's look at example pricing so you can see how much money one to two percentage points can make.

 

Example Temporary Help Service Surety Bond Pricing

Below are typical rates for credit based bonds ranging from the lowest to average. Pay attention to the difference in price.

Again 4% is on the high end if the owner or owner have poor or limited credit.

The prices above are one payment for a 12 month bond term.

But it's easy to see getting, even, a 1% lower rate saves you thousands of dollars.

It costs you nothing to have us price shop for you and you don't have to purchase once you get pricing.

Click here and complete the quote form to get pricing today. You can call a bond specialist to speak with a real person at 1-800-608-9950.

 

How Long Does The New Jersey Temporary Help Service Firm Bond Last?

Once you're ready to purchase your bond, all you need to do is complete an online checkout form.

It's also vital to ensure the following information is correct:

• Business name
• Business address
• Owner's names and addresses

If any of these are incorrect it will delay the process because your bond will have to be amended.

After your payment is processed our bond issuance team will prepare your bond with the:

• Correct bond form
• Required signatures and seals
• Power of attorney

Once your bond is ready we will email you a copy of the bond you can submit to the New Jersey Division of Consumer Affairs.

 

Renewing Your Temporary Help Service Firm Surety Bond

As mentioned, your bond has a term of 12 months from the effective date. You choose the effective (or activation) date when you purchase your bond.

As the effective date approaches you'll need to pay a renewal payment to keep the bond active for the next year.

Renewing your bond is easy when you purchase through Surety Bonds Direct.

You get assigned your own bond specialist and it's their job to manage your bond.

Your bond specialist will contact you 30 to 40 days in advance of the expiration date to remind you about your bond expiration. They will also have renewal pricing ready to go so you can just pay and keep your bond active.

Once you pay your renewal premium, the bond you filed when you got licensed will automatically remain active. This is called a continuous bond.

 

Temporary Help Service Bonds And Getting Your New Jersey Business License/Registration

The Division of Consumer Affairs has an all online registration process for temporary help service firms.

At a high level, the registration steps are:

• Select your business name making sure it's been registered with the Secretary of State
• Complete the online application detailing the ownership information and more
• Purchase your surety bond
• Go through initial application approval

When you're ready to get the surety bond process completed click here and complete our quote form. It's fast to fill out and if you prefer to speak with a person, call a bond specialist at 1-800-608-9950.