Company: NSP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001000753-25-000107
Chunk: 22

Company: INSPERITY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 8
Chunk 22
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 compared to YTD 2024.

•The percentage of WSEEs covered under our health insurance plans was 63% in YTD 2025 compared to 64% in YTD 2024.

•Reported results include changes in estimated claims run-off related to prior periods, which was an increase in costs of $9 million, or $3 per WSEE per month, in YTD 2025 compared to a decrease in costs of $32 million, or $12 per WSEE per month, in YTD 2024.

Please read Note 2 to the Consolidated Financial Statements, “Accounting Policies – Health Insurance Costs,” for a discussion of our accounting for health insurance costs.

Workers’ compensation costs

•Workers’ compensation costs increased 11%, or $2 per WSEE per month, in YTD 2025 compared to YTD 2024.

•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.25% in YTD 2025 compared to 0.23% in YTD 2024.

•Our continued discipline around our client selection, workplace safely and claims management has allowed for claims to be closed out at amounts below our original cost estimates, resulting in a reduction in workers’ compensation costs of $20 million, or 0.08% of non-bonus payroll costs, in YTD 2025 compared to a reduction of $25 million, or 0.11% of non-bonus payroll costs, in YTD 2024.

Please read Note 2 to the Consolidated Financial Statements, “Accounting Policies – Workers' Compensation Costs,” for a discussion of our accounting for workers’ compensation costs.

Payroll tax costs

•Payroll taxes increased 5% on a 4% increase in payroll costs, or $26 per WSEE per month.

Insperity | 2025 Third Quarter Form 10-Q29

     MANAGEMENT’S DISCUSSION AND ANALYSIS OF      FINANCIAL CONDITION AND RESULTS OF OPERATIONS

•Payroll taxes as a percentage of payroll costs were 7% in both YTD 2025 and YTD 2024.

Operating Expenses

•Salaries, wages and payroll taxes — Salaries, wages and payroll taxes (“Salaries”) are primarily a function of the number of corporate employees, their associated average pay and any additional cash incentive compensation.

•Stock-based compensation — Our stock-based compensation relates to the recognition of