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INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020, respectively (in thousands):
Total Carrying ValueLevel 1Level 2Level 3
September 30, 2021
Assets:    
Funds held for clients
Money market funds$2,409 $2,409 $— $— 
Available-for-sale securities17,451 — 17,451 — 
Total$19,860 $2,409 $17,451 $— 
Liabilities:
Contingent purchase consideration(1)
$4,943 $— $— $4,943 
Total$4,943 $— $— $4,943 
December 31, 2020
Assets:
Cash equivalents
Money market funds$5,204 $5,204 $— $— 
Funds held for clients
Money market funds63,999 63,999 — — 
Available-for-sale securities25,919 — 25,919 — 
Total$95,122 $69,203 $25,919 $— 
Liabilities:
Contingent purchase consideration(1)
$3,880 $— $— $3,880 
Total$3,880 $— $— $3,880 
Debt Securities, Available-for-sale
Restricted cash equivalents and investments classified as available-for-sale within funds held for clients consisted of the following (in thousands):
Amortized
Cost
Gross
Unrealized
Gains (1)
Gross
Unrealized
Losses (1)
Aggregate
Estimated
Fair Value
September 30, 2021
Restricted cash equivalents$1,000 $— $— $1,000 
Available-for-sale securities:
Certificates of deposit5,153 93 (4)5,242 
Corporate debt securities8,085 160 (5)8,240 
Municipal bonds3,427 52 (5)3,474 
U.S. Government agency securities500 — (5)495 
Total available-for-sale securities17,165 305 (19)17,451 
Total(2)
$18,165 $305 $(19)$18,451 
December 31, 2020
Restricted cash equivalents$1,258 $— $— $1,258 
Available-for-sale securities:
Certificates of deposit7,370 204 — 7,574 
Corporate debt securities8,914 295 (1)9,208 
Municipal bonds7,276 103 (1)7,378 
U.S. Government agency securities500 1 — 501 
Total available-for-sale securities24,060 603 (2)24,661 
Total(2)
$25,318 $603 $(2)$25,919 

(1)Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive income (loss). As of September 30, 2021 and December 31, 2020, there were 42 and 69 securities, respectively, in an unrealized gain position and there were 9 and 2 securities in an unrealized loss position, respectively. As of September 30, 2021, these unrealized losses were less than $6 individually and $19 in the aggregate. As of December 31, 2020, these unrealized losses were less than $2 individually and $2 in the aggregate. These securities have not been in a continuous unrealized gain or loss position for more than 12 months. We do not intend to sell these investments and we do not expect to sell these investments before recovery of their amortized cost basis, which may be at maturity. We review our investments to identify and evaluate investments that indicate possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.
(2)At September 30, 2021 and December 31, 2020, none of these securities were classified as cash and cash equivalents on the accompanying Condensed Consolidated Balance Sheets.

Funds held for clients represent assets that the Company has classified as restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Condensed Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories (in thousands):
September 30, 2021December 31, 2020
Restricted cash and cash equivalents held to satisfy client funds obligations$157,303 $296,408 
Restricted short-term marketable securities held to satisfy client funds obligations3,297 4,249 
Restricted long-term marketable securities held to satisfy client funds obligations14,154 20,412 
Total funds held for clients$174,754 $321,069 
Investments Classified by Contractual Maturity Date
Expected maturities of available-for-sale securities as of September 30, 2021 are as follows (in thousands):
One year or less$3,297 
After one year through five years14,154 
 $17,451