Workers Compensation

9 Months Ended

Sep. 30, 2014

Insurance [Abstract]

Workers Compensation

NOTE 3. WORKERS COMPENSATION

The Company has agreements with various insurance carriers to provide workers compensation insurance coverage for worksite employees. Insurance carriers are responsible for administrating and paying claims. The Company is responsible for reimbursing each carrier up to a deductible limit per occurrence.

The following summarizes the activities in liability for unpaid claims and claims adjustment expenses (in thousands):

	For the nine months ended September 30,			For the year ended December 31,
	2014			2013
Liability for unpaid claims and claims adjustment at beginning of period	$	58,610		$	53,900
Plans acquired through business combinations		–			481
Incurred related to:
Current year		44,567			26,401
Prior years		(4,450	)		(3,319	)
Total incurred		40,117			23,082
Paid related to:
Current year		(8,483	)		(8,055	)
Prior years		(7,364	)		(10,798	)
Total paid		(15,847	)		(18,853	)
Liability for unpaid claims and claims adjustment at end of period		82,880			58,610
Other premiums and collateral liabilities		18,448			10,152
Total workers compensation liabilities at end of period	$	101,328		$	68,762
Current portion included in worksite employee-related liability		34,055			23,453
Long term portion	$	67,273		$	45,309

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 September 30, 2014 and December 31, 2013, such restricted amounts of $34.5 million and $21.5 million, respectively, are presented as restricted cash and restricted investment within WSE-related assets in the accompanying consolidated balance sheets. In addition, the Company invests premium collateral in excess of short term claim obligations in certain longer term securities. While it is the intention of the Company to reinvest maturing securities, periodically certain securities will be classified as short term to the extent the Company does not intend to reinvest the proceeds upon maturity.  At September 30, 2014 and December 31, 2013, $62.5 million and $37.0 million, respectively, are presented as restricted long-term investments.