WORKERS COMPENSATION

The Company has agreements with various insurance carriers to provide workers compensation insurance coverage for worksite employees, including programs where either the Company or the carrier retains custody of claim deposits paid by the Company. Insurance carriers are responsible for administrating and paying claims. The Company is responsible for reimbursing each carrier up to a deductible limit per occurrence. In cases where the carriers retain custody, any excess deposits held by the carrier can be returned to the Company over time, based on terms defined within the respective agreements.

The following summarizes the activities in the balance sheet for unpaid claims and claims adjustment expenses within workers compensation assets and liabilities (in thousands):



	Year Ended December 31,
	2015			2014
Programs where assets are held by the Company to cover claims liabilities
Liability for unpaid claims and claims adjustment at beginning of period	$	92,406		$	58,610

Incurred related to:
Current year	88,438			61,669
Prior years	4,880			(4,725		)
Total incurred	93,318			56,944
Paid related to:
Current year	(16,076		)	(11,003		)
Prior years	(30,453		)	(12,145		)
Total paid	(46,529		)	(23,148		)

Reclassification from workers compensation receivable	5,045			—
Liability for unpaid claims and claims adjustment at end of period	$	144,240		$	92,406

Programs where assets are held by third parties to cover claims liabilities
Liability for unpaid claims and claims adjustment at the beginning of period	$	55,628		$	62,129
Incurred related to:
Current year	699			1,708
Prior years	21,511			20,126
Total incurred	22,210			21,834
Paid related to:
Current year	(300		)	(2,083		)
Prior years	(26,631		)	(26,252		)
Total paid	(26,931		)	(28,335		)

Reclassification to workers compensation liability	(5,045		)	—
Liability for unpaid claims and claims adjustment at end of period	$	45,862		$	55,628

Total liability for unpaid claims and claims adjustment at end of period	190,102			148,034

Assets held by third parties to cover claim liabilities	(58,522		)	(95,372		)
Workers compensation premiums and other liabilities	9,455			19,820
Other workers compensation assets	(1,012		)	(136		)
Total net workers compensation liabilities	$	140,023		$	72,346

Location on Consolidated Balance Sheet:
Workers compensation liabilities
Current portion included in worksite employee-related liability	$	66,174		$	36,778
Long term portion	105,481			75,448
Total	$	171,655		$	112,226

Workers compensation receivables
Current portion included in worksite employee-related asset	$	2,428		$	7,975
Long term portion	29,204			31,905



Total	$	31,632	$	39,880

Incurred claims related to prior years represent changes in estimates for ultimate losses on workers compensation claims.

Under the terms of certain agreements with workers compensation insurance carriers, the Company collects and holds premiums in restricted accounts pending claims payments by the claims administrator. As of December 31, 2015 and December 31, 2014, such restricted amounts of $49.8 million and $36.5 million, respectively, are presented as restricted cash and restricted investments within WSE-related assets in the accompanying consolidated balance sheets. In addition, at December 31, 2015 and December 31, 2014, $101.8 million and $69.4 million, respectively, are presented as restricted long-term cash and investments. Assets held by third parties to cover claim liabilities represents prefunded claim obligations paid to carriers in excess of estimated total claim liabilities, which will be applied to incurred claims. The funds remain restricted until the plan year to which they relate are settled.

The reclassification from workers compensation receivable to workers compensation liability resulted from the return of collateral to the Company following a negotiated amendment of the underlying contract with a carrier.