Accounts Receivable (Notes)

12 Months Ended

Dec. 31, 2021

Accounts Receivable Additional Disclosures [Abstract]

Accounts Receivable

4. Accounts Receivable

Accounts receivable, net consisted of the following:

	December 31,
(in thousands)	2021		2020
Trade, net	$	10,522	$	6,559
Unbilled	490,533		380,819
Other	12,251		5,368
Accounts receivable, net	$	513,306	$	392,746

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 $1.0 million in both December 31, 2021 and 2020. 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 WSEEs and for the accrued gross billings associated with such wages. These accruals are included in accrued WSEE 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 the same day as the applicable payroll date. As such, we generally do not require collateral. Client prepayments directly attributable to accrued worksite employee payroll costs and unbilled revenues have been netted as we have the legal right of offset for these amounts. Unbilled accounts receivable consisted of the following:

	December 31,
(in thousands)	2021		2020
Accrued worksite employee payroll cost	$	409,653	$	334,836
Unbilled revenues	100,934		81,311
Client prepayments	(20,054)		(35,328)
Unbilled accounts receivable	$	490,533	$	380,819