Company: NSP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001000753-25-000107
Chunk: 39

Company: INSPERITY, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Item 7
Chunk 39
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 and frequency of large claim activity in Q3 2025 as compared to Q3 2024.

•The percentage of WSEEs covered under our health insurance plans was 62% in Q3 2025 compared to 63% in Q3 2024.

•Reported results include changes in estimated claims run-off related to prior periods, which did not impact costs in Q3 2025 compared to a decrease in costs of $12 million, or $13 per WSEE per month, in Q3 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 15%, or $3 per WSEE per month, in Q3 2025 compared to Q3 2024.

•As a percentage of non-bonus payroll cost, workers’ compensation costs were 0.27% in Q3 2025 compared to 0.25% in Q3 2024.

Insperity | 2025 Third Quarter Form 10-Q28

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

•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 $5 million, or 0.05% of non-bonus payroll costs in Q3 2025, compared to a reduction of $8 million, or 0.09% of non-bonus payroll costs in Q3 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 $24 per WSEE per month.

•Payroll taxes as a percentage of payroll costs were 6% in both Q3 2025 and Q3 2024.

First Nine Months 2025 Compared to First Nine Months 2024

Gross profit for YTD 2025 decreased 13% to $728 million compared to $834 million in YTD 2024. Gross profit per WSEE per month for YTD 2025 decreased $41 to $261 compared to