Accounts Receivable

12 Months Ended

Dec. 31, 2015

Accounts Receivable Additional Disclosures [Abstract]

Accounts Receivable

3. Accounts Receivable

Our accounts receivable is primarily composed of trade receivables and unbilled receivables.  Our trade receivables, which represent outstanding gross billings to clients, are reported net of allowance for doubtful accounts of $1.1 million and $1.2 million as of December 31, 2015 and 2014, respectively.  We establish an allowance for doubtful accounts based on management’s assessment of the collectability of specific accounts and by making a general provision for other potentially uncollectible amounts.

We make an accrual at the end of each accounting period for our obligations associated with the earned but unpaid wages of our worksite employees and for the accrued gross billings associated with such wages. These accruals are included in accrued worksite employee payroll cost and unbilled accounts receivable; however, these amounts are presented net in the Consolidated Statements of Operations. We generally require clients to pay invoices for service fees no later than one day prior to the applicable payroll date. As such, we generally do not require collateral. Client prepayments directly attributable to unbilled accounts receivable have been netted against such receivables as the gross billings have been earned and the payroll cost has been incurred, thus we have the legal right of offset for these amounts. Unbilled accounts receivable consisted of the following:

	December 31,
	2015			2014
	(in thousands)
Accrued worksite employee payroll cost	$	161,917		$	192,396
Unbilled revenues	45,835			55,645
Customer prepayments	(17,037		)	(87,887		)
Unbilled accounts receivable	$	190,715		$	160,154