Payroll Deductions Bond - Joint Industry Board of the Electrical Industry in New York

Brief Summary

This bond is about money that belongs to your electricians, not to you. When an IBEW Local 3 contractor withholds dues assessments, 401k deferrals and Paid Family Leave from paychecks, the Joint Industry Board expects that money to arrive. A surety bond backs that promise without tying up your cash, and it is a separate bond from the JIB Wage & Welfare bond.

The Joint Industry Board of the Electrical Industry collects weekly remittances from contractors that employ IBEW Local Union No. 3 members. The Payroll Deductions bond guarantees that amounts the employer withholds from employee pay, as listed on the JIB Salary Deductions Chart, are remitted as required. The JIB is the obligee. Confirm the current amount, bond form and filing steps with the JIB before the bond is issued.

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How to Apply for a Payroll Deductions Bond:

• Ask the Joint Industry Board for the payroll deductions bond amount that applies to your firm.
• Confirm whether the JIB also requires the separate Wage & Welfare bond from your firm.
• Get the exact obligee wording and any required bond form from the JIB.
• Use the contractor's exact legal name as registered with the JIB.
• Complete the bond application with owner and company information for underwriting.
• Deliver the signed bond to the JIB as directed and keep a copy on file.

Detailed Information About the New York Payroll Deductions Bond:

Deductions and contributions are two different bonds

The JIB listing carries two bonds, and contractors often assume one covers both. This Payroll Deductions bond covers money taken out of employees' paychecks that the employer holds and must pass on. The Wage & Welfare bond covers the benefit contributions the employer pays on top of wages. Ask the JIB whether your firm needs one or both.

What counts as a payroll deduction

The JIB Salary Deductions Chart effective week ending July 15, 2026 lists the required deductions for all divisions:

• New York State Paid Family Leave, a weekly amount that varies by classification
• L.U. #3 Dues Assessment of 2.25% for listed classifications, including A Journeypersons, A Apprentices and M Helpers
• Mandatory 401k deferral of 1% of total gross wages for most classifications, which employees can raise up to IRS limits
• IBEW PAC at $0.05 per clock hour, only where the employee elects it
• 401k loan and E&C tuition loan repayments where they apply

The chart directs these amounts to the Joint Industry Board or Empower as applicable.

Who the obligee is

The Joint Industry Board of the Electrical Industry was founded on March 30, 1943 by IBEW Local Union No. 3 and the National Electrical Contractors Association as a joint labor and management body. It administers the industry's health, pension, 401k, annuity, training and related plans, and contractors report payroll to it through its electronic remittance system.

Before the bond is issued

The amount, bond form and delivery steps come from the JIB. Call the JIB employer contact or check with your contract administrator, get the required amount and obligee wording in writing, and order the bond to match.

Eligibility and Requirements for a New York Payroll Deductions Bond:

• Employer of IBEW Local Union No. 3 members reporting to the Joint Industry Board.
• Joint Industry Board of the Electrical Industry named as obligee.
• Bond condition: remittance of amounts withheld from employee pay under the JIB Salary Deductions Chart.
• Weekly payroll reporting through the JIB electronic remittance system.
• Bond amount and form acceptable to the JIB.

New York Payroll Deductions Bond FAQs:

Official and Additional Resources for the New York Payroll Deductions Bond: