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West Virginia bonds

West Virginia — Wage And Fringe Benefits (LLC/Partnership/Corporation) Bond

Preparing West Virginia employer wage security for an LLC, partnership or corporation? Check the business structure and payroll information in your Division of Labor request, then start through Purchase Now.

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Recorded state
West Virginia
Bond type
Wage & Fringe Benefits Bond
Category
Employment, wages & benefits

What this bond does

West Virginia Code §21-5-14 requires covered employers in construction, mineral severance/production or mineral transportation to furnish security for employee wages and fringe benefits when due, subject to exemptions and waivers.

Who needs it
The employing entity asked to post the West Virginia statutory bond. This is not limited to union employers, and the statute does not impose it on every West Virginia business.
Who it protects
The statute makes the bond payable to the State of West Virginia for the employee payment undertaking. It differs from an employee insurance policy, ERISA fidelity protection and a construction project's payment bond.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Match the legal entity form and payroll calculation

The Division's June 2018 reference guide distinguishes a sole-proprietor/partnership form from a corporation/LLC/LLP form. A general partnership and an LLP should not be treated as interchangeable merely because both include partnership in their names. Compare the proposed instrument with the Division's current instructions for your entity.

The statute bases security on four weeks of gross payroll at full capacity or production, plus 15% of that four-week payroll. Prepare the West Virginia payroll details and applicable exemption or waiver information; the purchase option does not select an amount or term for you.

Sources

Have these ready

  1. Exact employer legal name and entity structure.
  2. Division of Labor bond/status request and current prescribed form.
  3. Four weeks of West Virginia gross payroll at full capacity or production, plus the statutory 15%.
  4. Requested effective date and any applicable exemption/waiver documentation.
  5. Current employer authorization, affidavit and issued-bond submission instructions.

Questions about this bond

Must every business post a wage bond?

No. The statute addresses specified construction and mineral industries and provides exemptions and waivers. Use the Division's determination for your operations rather than assuming that LLC formation alone requires this bond.

How is the security amount established?

Section 21-5-14 uses four weeks of gross payroll at full capacity or production plus 15% of that payroll. Use the applicable West Virginia employee payroll information and Division instructions, not a flat sum inferred from the option.

Can any partnership use the LLC form?

The Division's reference guide distinguishes the forms by legal structure. Check whether the applicant is a general partnership, LLP, LLC or corporation against the current prescribed instrument before issuance.

How do I apply and satisfy the requirement?

Purchase Now opens Propeller in a new tab. Provide the employer structure, payroll and request details. After issuance and required execution, submit the bond and accompanying documents as instructed. The statute requires covered, nonexempt employers to furnish security before the covered work; starting an application is not posting an accepted bond.

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