Wisconsin Earned Wage Access Bond

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Why is a Wisconsin Earned Wage Access Bond Required?

The Department of Financial Institutions is responsible for setting the surety bond requirement for the license.

When you get licensed, the Department is signally your business as one the public can trust to perform earned wage access services for them.

The surety bond is the only tool the Department has to hold the businesses they're issuing licensees to accountable to the law.

The reason this is so important is every year the Department of Financial Institutions receives complaints of businesses that have purposefully committed financial fraud against their customers to make more money.

Examples of earned wage access fraudulent actions can include:

• Charging hidden or excessive fees
• Reporting too early to credit bureaus
• Advancing funds that have not been earned yet
• Using misleading advertising
• Implementing overly aggressive re-payment practices

If a customer is financially harmed by a business, they can make a claim against the surety bond to get financial compensation for the damages. What makes a surety bond a little different is the claim is capped by the bond amount.

So whether there's only one claim or multiple claims against a business, they are all capped by the bond amount.

In Wisconsin, the bond amount is $25,000.

We'll talk about how much this will cost in the next section. The good news is, this is lower compared to other states' earned wage access requirements so the price will be smaller.

 

How Much Does the Wisconsin Earned Wage Access Bond Cost?

The price you pay will be a small percentage of this $25,000 bond amount.

Earned wage access surety bonds are a special type of commercial insurance and like all commercial insurance, the price is determined by the following three factors:

• Personal credit of the business owner or owners
• Any credit or lending experience
• Prior bond claims if any owner has held any license in the past

The surety, or the insurance company that underwrites earned wage access surety bonds will use these factors to quote a rate.

This rate multiplied by the $25,000 bond amount is the price you'll pay for a bond term.

This is actually you're opportunity to save a couple hundred dollars if you can find the lowest rate and that's exactly what we're going to help you do.

 

How To Save Hundreds Of Dollars Buying Your Earned Wage Bond

We're Surety Bonds Direct, a specialized surety agency. We work with a network of A-rated sureties to price shop for our customers and secure the lowest possible price.

And the difference in pricing is more than you would imagine. Sureties don't share the reasons for the rates they provide, but this difference is often 1%, 2%, even over 3% in many cases.

As you'll see, for a $25,000 surety bond, a lower rate can save you hundreds of dollars.

The rates used in the table are from really good to average.

Get your pricing today and know exactly what you will have to pay to meet this license requirement.

And if you're not ready to purchase, all quotes are guaranteed for 30 days so there is no rush or pressure if you're not ready to purchase.

Go request your price quote today. Remember, this is free information for you. There's no obligation to purchase. Quotes are good for 30 days.

If you prefer to speak with a bond specialist, you can call 1-800-608-9950.

 

What Do You Do After You Purchase Your Earned Wage Access Surety Bond?

When you're ready to purchase your bond, paying for one is just like purchasing anything online, complete an online order form.

The key to the process is making absolutely sure the business name on the bond matches your business as it's registered with the Secretary of State and on your license. This often includes all "doing business as" names.

After your payment is processed, our issuance team will get to work to prepare your bond using the:

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

The licensing process for an earned wage access license is handled through the National Multistate Licensing System or NMLS.

Your surety bond will need to be e-filed in the NMLS and we handle this for you.

 

How Long Does a Wisconsin Earned Wage Access Surety Bond Last?

Your bond term will be 12 months from your bond's activation date. You choose the activate date when you're completing the purchase process.

As your 12 month bond term nears you will need to renew the bond for the following 12 months.

As a customer, we manage this process for you. As your expiration date approaches, you'll receive an email and phone call from your dedicated bond specialist.

They will have pricing ready to go. This is also the time to make any changes to the bond, which is rare.

This bond is considered continuous. This just means after you pay your renewal premium, you're done you won't have to file new paperwork with the NMLS.

 

Earned Wage Access Bonds And Getting Your Wisconsin Business License/Registration

If you haven't discovered it yet, the NMLS checklist compiler is a great resource for the steps to obtain your license.

Just select your state and license on the left and you'll get an actual checklist of the steps. At a high level these steps include:

 

Business Financial Statements

You must upload audited financial statements that are prepared by a CPA. These statements include a:

• Balance sheet
• Income statement
• Statement of cash flows

You must show a minimum, liquid, net-worth of at least $50,000 with some set positive working capital.

If cash makes up over 20% of your overall assets, you must support this with bank statements.

 

Credit Reports and Criminal Background Checks

Any individual in position of control, officers, managers, owners, must submit a personal credit report.

 

Business Formation Documents And Trade Names

You must provide copies of your business formation documents from the Secretary of State and if you are using any trade names, a list of all registered names.

This will include uploading your business license. If you're a company with your primary location located in another state, you must provide a Nevada Secretary of State Foreign Authority.

 

Management and Organizational Chart

You must outline the business:

• Directors
• Officers
• Managers
• Resident agent

This will include outlining the compliance reporting and internal audit structure.

 

Sample Documents

You will need to provide sample documents you'll use during the course of business including:

• Application your customers will be asked to complete
• Earned wage access agreement consumers will be asked to sign when signing up
• Consumer consent statement is required if the earned wage access agreement is completely electronically
• Payment authorization forms customers will be asked to sign if you plan on using them

Other requirements include:

• An outline of the terms and conditions for customers
• Personal financial statements for direct owners, indirect owners, and officers
• Primary and non-primary contact employees
• Registered agent and the qualified individual

When you're ready to purchase your surety bond, we are ready to help you find the lowest possible price. Click here to have us find you the lowest price or call us at 1-800-608-9950.