Workers Compensation

3 Months Ended

Mar. 31, 2016

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 carrier retains custody of claim deposits, 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):



	Three months ended March 31, 2016			Year ended December 31, 2015

Liability for unpaid claims and claims adjustment at beginning of period	$	190,102		$	148,034
Incurred related to:
Current year	22,774			89,137
Prior years	5,263			26,391
Total incurred	28,037			115,528
Paid related to:
Current year	(711		)	(16,376		)
Prior years	(17,276		)	(57,084		)
Total paid	(17,987		)	(73,460		)

Liability for unpaid claims and claims adjustment at end of period	$	200,152		$	190,102

Assets held by third parties to cover claim liabilities	(67,807		)	(58,522		)
Workers compensation premiums and other liabilities	16,000			9,455
Other workers compensation assets	(6,471		)	(1,012		)
Total net workers compensation liabilities	$	141,874		$	140,023

Location on Consolidated Balance Sheet:
Workers compensation liabilities
Current portion included in worksite employee-related liability	$	61,100		$	66,174
Long term portion	119,900			105,481
Total	$	181,000		$	171,655

Workers compensation receivables
Current portion included in worksite employee-related asset	$	2,234		$	2,428
Long term portion	36,892			29,204
Total	$	39,126		$	31,632

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

Under the terms of its agreements with its workers compensation insurance carriers, the Company collects and holds premiums in restricted accounts pending claims payments by the claims administrator. As of March 31, 2016 and December 31, 2015, such restricted amounts of $57.0 million and $49.8 million, respectively, are included in restricted cash and restricted investments within WSE-related assets in the accompanying consolidated balance sheets. In addition, at March 31, 2016 and December 31, 2015, $103.5 million and $101.8 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.