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Unique Wage Bond

West Virginia Contractor License BondPayroll-Based Wage Bond

West Virginia has no state contractor license but requires a unique wage bond for construction employers. Bond amount is calculated as 4 weeks payroll + 15%. Non-resident contractors need separate tax bonds.

Wage Bond = 4 weeks payroll + 15% | Protects worker wages

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Payroll
Based Bond
+15%
Safety Margin
$1K-$50K
Non-Resident
Same Day
Approval

West Virginia Wage Bond System

Unique payroll-based calculation

How the Wage Bond Works
Calculation formula

Bond = (4 × Weekly Payroll) + 15%

Based on maximum capacity gross WV payroll

Example Calculation:

  • • Weekly max payroll: $10,000
  • • 4 weeks: $40,000
  • • Plus 15%: $6,000
  • • Total Bond: $46,000
Who Needs a Wage Bond
Required employers

Required For:

  • • Employers in construction industry
  • • Mineral severance/production/transportation
  • • With employees physically working in WV
  • • Not meeting exemption criteria

Purpose:

Protects construction workers by guaranteeing wage payment if employer fails to pay.

Wage Bond Exemptions
You may be exempt if any apply
In business in WV with employees for 1+ years
In business in another state for 5+ years
No employees physically working in WV
Single-family dwelling/family farming construction only
$100,000+ in available assets
Subsidiary of 5+ year parent company
Non-Resident Contractor Bond
Additional requirement for out-of-state contractors

Requirements:

  • • Register with WV State Tax Department
  • • $30 registration fee
  • • Bond amount: $1,000-$50,000
  • • Based on contract value and tax history

Bond Purpose:

  • • Ensures payment of WV taxes
  • • Separate from wage bond
  • • Both may be required
  • • Contact Tax Dept for exact amount
West Virginia Requirements Summary
NO statewide contractor license required
Wage Bond required for construction employers
Bond = 4 weeks gross WV payroll at maximum capacity + 15%
Non-resident contractor bond: $1,000-$50,000 (contract value based)
Must register with WV State Tax Department ($30 fee)
Bond must remain continuous until cancelled
Acceptable: Cash, Letter of Credit, CD, or Surety Bond

Acceptable Bond Security Forms

West Virginia accepts multiple forms

Cash

Check or money order payable to WV Division of Labor

Letter of Credit

From U.S. banks or credit unions

Certificate of Deposit

Must be from a West Virginia bank

Surety BondPopular

Requires Attorney General approval; most convenient option

West Virginia Bond Cost Examples

Annual premium estimates

Small Contractor
$5,000/week payroll
Bond Amount$23,000
Excellent Credit$230-$460
Fair Credit$690-$1,150
Medium Contractor
$15,000/week payroll
Bond Amount$69,000
Excellent Credit$690-$1,380
Fair Credit$2,070-$3,450
Non-Resident Bond
$25,000 example
Bond Amount$25,000
Excellent Credit$250-$500
Fair Credit$750-$1,250

How to Get Bonded in West Virginia

Step-by-step process

1

Calculate Your Bond Amount

Wage bond: 4 weeks max WV payroll + 15%; Non-resident: based on contract value

2

Check Exemptions

Verify if you qualify for wage bond exemptions based on business history or assets

3

Register (Non-Residents)

Register with WV State Tax Department and pay $30 fee

4

Purchase Surety Bond

Get approved bond from authorized surety (requires AG approval)

5

Submit to Division of Labor

File bond with WV Division of Labor for wage bond approval

6

Maintain Continuous Bond

Bond must remain active - no gaps in coverage allowed

Frequently Asked Questions

West Virginia contractor bond questions

Does West Virginia require a contractor license bond?
West Virginia does NOT have a statewide contractor license requirement. However, construction employers must post a WAGE BOND through the Division of Labor. The wage bond amount is calculated as 4 weeks of gross WV payroll at maximum capacity plus 15%. Non-resident contractors may need additional bonds of $1,000-$50,000 based on contract value.
How is the West Virginia wage bond calculated?
The WV wage bond is unique - it's based on your payroll, not a fixed amount. Formula: 4 weeks gross WV payroll at maximum capacity + 15%. Example: If your maximum payroll is $10,000/week, your bond would be $46,000 ($40,000 + $6,000). This bond protects construction workers' wages.
Who is exempt from the West Virginia wage bond?
You may be exempt if: (1) You've been in business in WV with employees for 1+ years, (2) You've been in business in another state for 5+ years, (3) You have no employees physically working in WV, (4) You only do single-family dwelling/family farming construction, (5) You have $100,000+ in available assets, (6) You're a subsidiary of a 5+ year parent company.
How much does a West Virginia contractor bond cost?
West Virginia bond costs depend on the type and amount. Wage bonds based on payroll typically cost 1-5% annually. A $46,000 wage bond (example above) might cost $460-$2,300. Non-resident contractor bonds ($1,000-$50,000) cost 1-3% with good credit. Poor credit increases rates.
What is the West Virginia non-resident contractor bond?
Non-resident contractors must register with the WV State Tax Department ($30 fee) and may need a bond of $1,000-$50,000 based on contract value, taxable component, and payment history. This ensures payment of state taxes. The wage bond is separate and also required if you have WV employees.
What forms of bond security does West Virginia accept?
West Virginia accepts several forms of security for the wage bond: (1) Cash (check or money order), (2) Letter of Credit from U.S. banks/credit unions, (3) Certificate of Deposit from a WV bank, (4) Surety Bond (requires Attorney General approval). Most contractors choose surety bonds for convenience.

Other State Contractor Bonds

Explore requirements in neighboring states

Virginia
DPOR Requirements
$50K-$100K

By contractor class

Ohio
Local Requirements
Varies

By municipality

All States
Complete directory
50 States

View all requirements

Official Resources

WV Division of Labor

Wage bond requirements and filing

Visit Division of Labor
Legal Authority

Wage Bond: West Virginia Division of Labor requirements

Non-Resident: WV State Tax Department

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Fast approval • Competitive rates

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