Workers Compensation

6 Months Ended

Jun. 30, 2015

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 six months ended June 30,			For the year ended December 31,
	2015			2014

Liability for unpaid claims and claims adjustment at beginning of period	$	92,406		$	58,610
Incurred related to:
Current year		40,155			61,669
Prior years		2,094			(4,725	)
Total incurred		42,249			56,944
Paid related to:
Current year		(12,527	)		(13,525	)
Prior years		(6,537	)		(9,623	)
Total paid		(19,064	)		(23,148	)
Liability for unpaid claims and claims adjustment at end of period		115,591			92,406
Other premiums and collateral liabilities		26,469			19,820
Total workers compensation liabilities at end of period	$	142,060		$	112,226
Current portion included in worksite employee- related liability		42,935			36,778
Long term portion	$	99,125		$	75,448

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 June 30, 2015 and December 31, 2014, such restricted amounts of $41.2 million and $36.5 million, respectively, are presented as restricted cash and restricted investment within WSE-related assets in the accompanying consolidated balance sheets. In addition, at June 30, 2015 and December 31, 2014, $82.9 million and $69.4 million, respectively, are presented as restricted long-term investments.