Company: NSP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001000753-25-000013
Chunk: 86

Company: INSPERITY, INC.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 86
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 Insperity612025 Proxy Statement

#### Performance Awards
A participant will generally not recognize any taxable income upon the grant of performance awards or performance units. Upon settlement of such awards, participants normally will recognize ordinary income in the year of receipt equal to the amount of cash and the fair market value of any common stock received. The Company or one of its subsidiaries will generally be entitled to a deduction for federal income tax purposes at the same time and in the same amount that a participant recognizes ordinary income from performance awards or performance units under the Plan.

#### Internal Revenue Code Section 409A
Some awards under the Plan, such as RSUs, performance units, phantom stock and other stock-based awards may be considered to be deferred compensation subject to special federal income tax rules under Internal Revenue Code Section 409A and the regulations promulgated thereunder. Failure to satisfy the applicable requirements under Section 409A may result in the acceleration of income and additional income tax liability to the participant, including certain penalties. Awards granted under the Plan are intended to be either exempt from, or comply with, the requirements under Section 409A. Distributions to certain participants identified as “specified employees” shall be delayed to the extent necessary to comply with Section 409A.

#### Certain Tax Code Limitations on Deductibility
All of the above-described deductions are subject to the limitations on deductibility described in Internal Revenue Code Section 162(m). If the payment of awards in connection with a change in control, are not sufficiently reduced under terms of the Plan, an excess parachute payment under the Internal Revenue Code could result, triggering a 20% excise tax (in addition to income tax otherwise owed) payable by the participant. The Company will not be entitled to a deduction for that portion of any “parachute payment” that is subject to the excise tax. Therefore, there can be no assurance that compensation attributable to awards under the Plan will be fully deductible to the Company under all circumstances.

THE ABOVE SUMMARY OF THE EXPECTED EFFECT OF THE FEDERAL INCOME TAX UPON PARTICIPANTS IN THE PLAN IS NOT COMPLETE, AND THE COMPANY RECOMMENDS THAT THE PARTICIPANTS CONSULT THEIR OWN TAX ADVISORS FOR COUNSELING. MOREOVER, THE ABOVE SUMMARY IS BASED UPON CURRENT FEDERAL INCOME TAX LAWS, WHICH ARE SUBJECT TO CHANGE. THE TAX TREATMENT UNDER FOREIGN, STATE OR LOCAL LAW IS NOT COVERED IN THE ABOVE SUMMARY.

Subject to stockholder approval of the Amendment, the allocation