Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 109

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 16
Chunk 109
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 certain employees based on the achievement of pre-established performance goals. Each performance unit represents the right to receive one common share at a future date based on our performance against certain targets. Performance units have a vesting schedule of three years. A portion of the LTIP grant to employees was considered a market-based performance award that cliff vests at the end of three years assuming continued employment and achievement of market-based performance goals. The fair value of each performance unit is the market price of our common stock on the date of grant. The fair value of each market-based performance unit was determined through use of the Monte Carlo simulation method. The compensation expense for such awards is recognized on a straight-line basis over the vesting term. Over the performance period the number of shares expected to be issued is adjusted upward or downward based on the probability of achievement of the performance target.Company-Sponsored 401(k) Retirement PlansUnder our 401(k) retirement plan for corporate employees (the “Corporate Plan”), we matched 100% of eligible corporate employees’ contributions, up to 6% of the employees’ eligible compensation in 2024, 2023, and 2022. Matching contributions under the Corporate Plan are immediately vested. During 2024, 2023 and 2022, we made matching contributions on behalf of corporate employees to the Corporate Plan of $19 million, $17 million, and $14 million, respectively, and are included in salaries, wages and payroll taxes in our Consolidated Statements of Income.Under our separate 401(k) retirement plan for WSEEs (the “Worksite Employee Plan”), the match percentage for WSEEs ranges from 0% to 6%, as determined by each client company. Matching contributions under the Worksite Employee Plan are immediately vested. During 2024, 2023 and 2022, we made matching contributions on behalf of WSEEs to the Worksite Employee Plan of $390 million, $375 million, and $329 million, respectively.AdvertisingWe expense all advertising costs as incurred.Income TaxesWe use the liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and income tax carrying amounts of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. Please read Note 7, “Income Taxes,” for additional information.

Recent Accounting PronouncementsIn December 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023