Ohio Unemployment Compensation Fund Bond

Ohio Unemployment Compensation Fund Bond

Nonprofit organizations, sometimes referred to as reimbursing employers, that elect and are approved to make payments to the Unemployment Compensation Fund in lieu of contributions must first file a surety bond with the Ohio Department of Job and Family Services (ODJFS). The bond’s purpose is to guarantee restitution, through the surety company (Jet), should the nonprofit organization fail to make due payments.

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Jet provides surety bonds directly to the public, allowing you to get your bond quickly and efficiently with no unnecessary added fees.

What Is the Cost for the Unemployment Compensation Fund Bond? How Is the Bond Limit Determined?

The cost will depend on a few factors: your personal credit, the bond limit, a review of your business financial statements, etc. With Jet, you will only pay a small percentage of the required bond limit.

The Department of Job and Family Services will let you know the bond limit needed, which is the lesser of the two following amounts:

  1. 3% of the reimbursing employer’s wages paid for employment which would be taxable if the employer was a subject employer over the previous four quarters
  2. A different amount determined by ODJFS

The bond limit can be increased or decreased at any time. It is important to let Jet know if this is the case so we can update the bond form to reflect the change.

Why Is the Bond Required by the Ohio Department of Job and Family Services?

The Ohio Department of Job and Family Services is tasked with overseeing the state’s child and adult protective services, adoption, child support programs, child care, workforce development, public assistance, and unemployment insurance. Nonprofit businesses (reimbursing employers) paying into the Unemployment Compensation Fund are regulated by the ODJFS and need a bond if they choose and are approved to make payments to the Fund rather than contributions. 

The bond’s sole purpose is to ensure that reimbursing employers electing to make payments instead of contributions pay their dues and any interest accrued. Jet steps in as a third-party guarantor of compensation when the nonprofit organization fails to make required payments.

How to Apply for the Ohio Unemployment Compensation Fund Bond With Jet 

Get right into the application by clicking the button above. Your social security number (for the soft credit check) and basic business information will be collected. Jet must review the details and will get back to you on the next steps.

Business and personal financials may need to be reviewed, in addition to your most-recent year-end audit. The more information provided, the more likely it is we can get you an approved rate.

As soon as it is ready, a quote will be emailed to you. From there you can purchase the bond online and will receive a copy of the bond and your receipt once processed.

How Does the Bond Get Filed to the Ohio Department of Job and Family Services?

Allow us to take care of the bond filing for you! Unless you’d prefer to send in the bond yourself, you can select that option at checkout. The completed bond form must be sent to the address below:

Ohio Department of Job and Family Services
PO Box 182404
Columbus, OH 43218

Is the Ohio Unemployment Compensation Fund Bond Cancellable?

Unfortunately, no. The bond is active for 24 months from the date of issuance. During that time you and the surety company (Jet) are liable under the bond. If you simply do not need the bond after 24 months, the bond will end and liability will be released at that time. Notify us of any changes to the bond by emailing us at [email protected].

Does the Ohio Unemployment Compensation Fund Bond Expire?

The bond form does have a beginning and ending date, which must be set as a 24-month period. However, if you need the bond beyond 24 months, Jet can file a continuation certificate with the Ohio Department of Job and Family Services to extend your coverage. 

You will be sent a reminder via email and to your mailing address before the bond’s expiration date, and you must let us know how you’d like to proceed. It is also important for you to let us know if the bond amount has changed so we can adjust the bond form accordingly.

How Does a Nonprofit Organization Avoid Unemployment Compensation Fund Bond Claims?

Section 4141.241 of the Code, which details the surety bond requirement, should be complied with to avoid bond claims. More specifically, make due payments and any accrued interest in a timely manner.

Any payment in lieu of contribution that is late or simply not paid shall gain 14% interest compounded monthly on the total receivable balance due. In this calculation, any partial month will be considered as a full month.

What Happens if I Get an Ohio Unemployment Compensation Fund Bond Claim?

Jet will proceed with an investigation after collecting all claim details and documentation. Our goal is to weed out any false claims. Any justified claims will be paid up to the bond limit to the claimant. 

Unlike insurance, surety bonds are enforced to protect the state and the public. Actions that result in a bond claim are the responsibility of your lack of compliance with the laws. Because of this, you must pay Jet back in the claim amount which does not exceed the bond limit.

Ohio Unemployment Compensation Fund Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: