Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 66

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 66
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 $24 per WSEE per month.

•Payroll taxes as a percentage of payroll costs increased to 7% in 2024 compared to 6% in 2023.

2023 Compared to 2022

The net decrease in direct costs between 2023 and 2022 attributable to the changes in cost estimates for benefits and workers’ compensation totaled $16 million as discussed below. The $63 per WSEE per month increase in direct costs is due primarily to the direct cost component changes as follows:

Benefits costs

•The cost of group health insurance and related employee benefits increased $44 per WSEE per month, or 7% on a cost per covered employee basis.

•The percentage of WSEEs covered under our health insurance plans was 65% in both 2023 and 2022.

•Reported results include changes in estimated claims run-off related to prior periods, which was a decrease in costs of $13 million, or $3 per WSEE per month, in 2023 compared to an increase in costs of $12 million, or $3 per WSEE per month, in 2022.

Please read “—Critical Accounting Policies and Estimates—Benefits Costs” for a discussion of our accounting for health insurance costs.

Workers’ compensation costs

Our continued discipline around our client selection, workplace safety and claims management contributed to the small increase in our cost per WSEE and, as a result, has allowed for claims within our policy periods to be closed out at amounts below our original cost estimates.

•Workers’ compensation costs increased 12%, or $1 per WSEE per month, in 2023 compared to 2022.

•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.23% in both 2023 and 2022.

•We recorded a reduction in workers’ compensation costs of $33 million, or 0.11% of non-bonus payroll costs, in  2023 compared to a reduction of $42 million, or 0.14% of non-bonus payroll costs, in 2022, primarily as a result of closing out claims at lower than expected costs.

Please read “—Critical Accounting Policies and Estimates—Workers' Compensation Costs” for a discussion of our accounting for workers’ compensation costs.

Payroll tax costs

•Payroll taxes increased 9% on a 7% increase in payroll costs, or $18 per WSEE per month.

•Payroll taxes as a percentage of payroll costs