Insperity, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Insperity, Inc. has filed its 2023 10-K annual report, detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

INSPERITY, INC. (NSP) filed a Annual Report (10-K) with the SEC on February 9, 2024. Insperity, Inc. filed its 2023 Form 10-K on February 9, 2024, reporting for the fiscal year ending December 31, 2023. The company was formerly known as Adminstaff Inc. Insperity, Inc. is incorporated in Delaware. The company's principal business address is 19001 Crescent Springs Dr, Kingwood, TX 77339. The filing covers the period from January 1, 2023, to December 31, 2023.

Why It Matters

For investors and stakeholders tracking INSPERITY, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Insperity's financial health, operational performance, and strategic direction for the past fiscal year, which is crucial for investors to assess the company's value and future prospects. As a public document, this filing ensures transparency and compliance with SEC regulations, allowing stakeholders to make informed investment decisions based on standardized financial reporting.

Risk Assessment

Risk Level: low — INSPERITY, INC. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative developments based on the provided header information.

Analyst Insight

Review the detailed financial statements and risk factors within the full 10-K filing to understand Insperity's performance and potential challenges.

Key Players & Entities

• INSPERITY, INC. (company) — Filer name
• NSP (company) — Ticker symbol
• ADMINISTAFF INC (company) — Former company name
• 19001 CRESCENT SPRINGS DR (company) — Business address street
• KINGWOOD (company) — Business address city
• TX (company) — Business address state
• 77339 (company) — Business address zip

Forward-Looking Statements

• Insperity will continue to operate primarily within the 'Help Supply Services' sector. (INSPERITY, INC.) — high confidence, target: 2025-12-31
• The company will file its next annual report (10-K) around February 2025. (INSPERITY, INC.) — high confidence, target: 2025-02-28

FAQ

Industry Context

Insperity, Inc. operates in the Help Supply Services industry (SIC 7363), providing human resources and related services.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit annual reports to the SEC.

What Investors Should Do

1. Analyze the full 10-K document for detailed financial performance metrics.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into business operations and strategy.
3. Review the Risk Factors section for potential challenges and uncertainties faced by Insperity.

Key Dates

• 2024-02-09: 10-K Filing Date — Filing of the annual report for the fiscal year ended December 31, 2023.
• 2023-12-31: Fiscal Year End — The period covered by the annual report.

Year-Over-Year Comparison

This is the initial extraction of the 2023 10-K filing; comparison to prior filings would require access to those documents.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share NSP New York Stock

Filing Documents

• nsp-20231231.htm (10-K) — 1729KB
• a12312023nsp-ex105officerr.htm (EX-10.5) — 75KB
• a12312023nsp-ex106l1819rsu.htm (EX-10.6) — 75KB
• a12312023nsp-ex107employee.htm (EX-10.7) — 67KB
• a12312023nsp-ex109ltipawar.htm (EX-10.9) — 73KB
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• 0001000753-24-000012.txt (&nbsp;) — 9552KB
• nsp-20231231.xsd (EX-101.SCH) — 41KB
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Risk Factors

Item 1A. Risk Factors 19

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 31

Cybersecurity

Item 1C. Cybersecurity 31

Properties

Item 2. Properties 33

Legal Proceedings

Item 3. Legal Proceedings 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35 Item S-K 401(b). Executive Officers of the Registrant 36 Part II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 38

[Reserved]

Item 6. [Reserved] 39

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 40

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 58

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 58

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 59

Controls and Procedures

Item 9A. Controls and Procedures 59

Other Information

Item 9B. Other Information 59

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 59 Part III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 60

Executive Compensation

Item 11. Executive Compensation 60

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 60

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 60

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 60 Part IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 61

Form 10-K Summary

Item 16. Form 10-K Summary 64

BUSINESS

BUSINESS PART I Unless otherwise indicated, "Insperity," "we," "our" and "us" are used in this annual report to refer to Insperity, Inc. and its consolidated subsidiaries. This annual report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). You can identify such forward-looking statements by the words "anticipates," "expects," "intends," "plans," "projects," "believes," "estimates," "likely," "possibly," "probably," "could," "goal," "opportunity," "objective," "target," "assume," "outlook," "guidance," "predicts," "appears," "indicator" and similar expressions. In the normal course of business, in an effort to help keep our stockholders and the public informed about our operations, from time to time, we may issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies; projected or anticipated benefits or other consequences of such plans or strategies; or projections involving anticipated revenues, earnings, average number of worksite employees ("WSEEs"), benefits and workers' compensation costs, or other operating results. We base the forward-looking statements on our current expectations, estimates and projections. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Therefore, the actual results of the future events described in such forward-looking statements in this annual report, or elsewhere, could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are the risks and uncertainties discussed in this annual report, inclu

Business

Item 1. Business. General We provide an array of human resources ("HR") and business solutions designed to help improve business performance. Since our formation in 1986, we have evolved from being solely a professional employer organization ("PEO"), an industry we pioneered, to our current position as a comprehensive business performance solutions provider. Our long-term strategy is to provide the best small and medium-sized businesses in the United States with our specialized human resources service offering and to leverage our buying power and expertise to provide additional valuable services to clients. Our most comprehensive HR services offerings are provided through our Workforce Optimization and Workforce Synchronization TM solutions (together, our "PEO HR Outsourcing Solutions"), which encompass a broad range of human resources functions, including payroll and employment administration, employee benefits, workers' compensation, government compliance, performance management, and training and development services, along with our cloud-based human capital management platform, our Insperity Premier TM platform. Workforce Optimization is our most comprehensive HR outsourcing solution and is our primary offering. Workforce Synchronization, which generally is offered only to our middle market client segment, is a lower cost offering with a typically longer commitment that includes the same compliance and administrative services as Workforce Optimization and allows those clients to select, for an additional fee, from the strategic HR products and services that are included with Workforce Optimization. In addition to our PEO HR Outsourcing Solutions, we offer a comprehensive traditional payroll and human capital management solution, known as our Workforce Acceleration TM solution. We also offer a number of other business performance solutions, including Recruiting Services, Employment Screening, Retirement Services, and Insurance Services. These other products an

BUSINESS

BUSINESS We accomplish the objectives of our PEO HR Outsourcing Solutions through a "high-touch/high-tech" approach to service delivery. In advisory areas, such as recruiting, employee performance management and employee training, we employ a high-touch approach designed to ensure that our clients receive the personal attention and expertise needed to create a customized human resources solution. We utilize a variety of information technology capabilities to deliver our PEO HR Outsourcing Solutions, including Insperity Premier through which we, along with our clients and WSEEs, manage employee administration, payroll, payroll tax, benefits, retirement solutions and other HR-related information, creating efficiencies for all parties. As of December 31, 2023, we had 83 physical office locations in 45 markets. To take advantage of economic efficiencies, multiple sales offices may share a physical location. In addition, we had four regional service centers along with human resources and client service personnel located in a majority of our 45 sales markets, which serviced an average of 315,072 WSEEs per month in the fourth quarter of 2023 . Our service centers coordinate PEO HR Outsourcing Solutions for clients on a regional basis and localized face-to-face human resources services. We were organized as a corporation in 1986. Our principal executive offices are located at 19001 Crescent Springs Drive, Kingwood, Texas 77339. Our telephone number at that address is (281) 358-8986, and our website address is www.insperity.com. Our stock is traded on the New York Stock Exchange under the symbol "NSP." We file or furnish periodic reports with the Securities and Exchange Commission ("SEC"), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and if applicable, amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act. Through the investor relations section of our website, we ma

BUSINESS

BUSINESS unscrupulous and financially unsound PEOs, and promotes further development of the industry. Currently, 42 states have enacted legislation either recognizing PEOs or requiring licensing, registration, or certification, and several others are considering such regulation. Such laws vary from state to state but generally provide for monitoring the fiscal responsibility of PEOs. State regulation assists in screening insufficiently capitalized PEO operations and helps to resolve interpretive issues concerning employer/employee status for specific purposes under applicable state law. We have actively supported such regulatory efforts and are currently recognized, licensed, registered, certified or pursuing registration in all of these states. The cost of compliance with these regulations is not material to our financial position or results of operations. The Small Business Efficiency Act ("SBEA") created a federal regulatory framework for the payment of wages to WSEEs and the reporting and remittance of federal payroll taxes on those wages paid by PEOs certified under the Internal Revenue Code as meeting certain requirements ("CPEOs"). We actively supported the enactment of this law. The SBEA clarified that a CPEO, rather than the client, is treated as the employer for purposes of reporting and remitting payroll taxes. It also clarified that a CPEO is treated as a successor employer for purposes of the wage base of WSEEs on which federal payroll taxes are applied. In addition, the law clarified that clients of a CPEO remain eligible for specified tax credits for which they would have been eligible absent the CPEO relationship. Following the establishment of the voluntary certification program by the Internal Revenue Service of the United States ("IRS") and Treasury Department, our PEO subsidiary, Insperity PEO Services, L.P., received its designation as a CPEO from the IRS. Service Offerings PEO HR Outsourcing Solutions We serve small and medium-sized busin

BUSINESS

BUSINESS Internal Revenue Code (the "Code") Occupational Safety and Health Act (OSHA) Federal Income Contribution Act (FICA) Worker Adjustment and Retraining Notification Act (WARN) Federal Unemployment Tax Act (FUTA) Uniformed Services Employment and Reemployment Rights Act (USERRA) Fair Labor Standards Act (FLSA) State unemployment and employment security laws Employee Retirement Income Security Act, as amended (ERISA) State workers' compensation laws Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) Health Care and Education Reconciliation Act of 2010 (the "Reconciliation Act") Immigration Reform and Control Act (IRCA) Patient Protection and Affordable Care Act (PPACA) Title VII (Civil Rights Act of 1964) State and local law equivalents of the foregoing Health Insurance Portability and Accountability Act (HIPAA) The Families First Coronavirus Response Act (FFCRA) Age Discrimination in Employment Act (ADEA) The Coronavirus Aid, Relief and Economic Security Act, also known as the CARES Act Americans with Disabilities Act (ADA) The Consolidated Appropriations Act, 2021 (CAA) The Family and Medical Leave Act (FMLA) The American Rescue Plan Act of 2021 (ARPA) Genetic Information Nondiscrimination Act of 2008 Paycheck Protection Program and Healthcare Enhancement Act (PPP) Drug-Free Workplace Act SECURE 2.0 Act of 2022, as part of The Consolidated Appropriations Act, 2023 These laws and regulations are complex, and in some instances overlapping. We assist our PEO HR Outsourcing Solutions clients in complying with these laws and regulations by providing services in the categories set forth below: Administrative Functions . Administrative functions encompass a wide variety of processing and recordkeeping tasks, mostly related to payroll administration and regulatory compliance. Specific examples include: payroll processing payroll tax deposits payroll tax reporting employee file maintenance unemployment claims processing workers' comp

BUSINESS

BUSINESS an educational assistance program an adoption assistance program group term life insurance accidental death and dismemberment insurance critical illness and accident insurance The group health plan includes medical, dental, vision and prescription drug coverage. All benefit plans are provided to eligible employees based on the specific eligibility provisions of each plan. We are the policyholder responsible for the costs and premiums associated with any group insurance policies that provide benefits under these plans, and we act as plan sponsor and administrator of the plans. We negotiate the terms and costs of the plans, maintain the plans in accordance with applicable federal and state regulations and serve as liaison for the delivery of these benefits to WSEEs and corporate employees. COBRA coverage is extended to eligible terminated WSEEs and other eligible individuals in accordance with applicable law. We believe that the variety and comprehensive nature of our benefit plan offerings are generally not available to employees in our small and medium-sized business target market and allow our clients to compete with the type and level of benefits usually offered only by companies with a larger group of employees. As a result, we believe the availability of these benefit plans provides our clients with a competitive advantage that small and medium-sized businesses are typically unable to attain on their own. Insperity Premier. Insperity Premier is our cloud-based human capital management platform for our PEO HR Outsourcing Solutions and is available to our clients with minimal implementation effort. It is designed to provide our service providers with insight into client and WSEE HR information to better support their needs. Insperity Premier provides role-based access to a wide range of human capital management functions, along with personalized content to the managers, owners and WSEEs of our PEO HR Outsourcing Solutions clients, including: For

BUSINESS

BUSINESS e-learning web-based training links to benefits providers and other key vendors performance management tools including self-reviews and review history, if offered by client ability to submit time and attendance information, absences, and paid time off requests, if offered by client mobile access to perform a wide range of employee-specific activities such as reporting time and attendance and paid time off, view pay stubs, insurance coverage and ID cards, view 401(k) balances and other commonly accessed data People Management . In addition to the services we deliver through Insperity Premier, we provide a wide variety of human capital management services that give our clients access to HR advisors and additional resources normally found only in the human resources departments of large companies. All PEO HR Outsourcing Solutions clients have access to our advice concerning personnel policies and practices, including recruiting, discipline, and termination procedures. Other human capital management services we provide include: drafting and reviewing personnel policies and employee handbooks designing job descriptions performing prospective employee screening and background investigations designing performance appraisal processes and tools professional development and issues-oriented training diversity, equity and inclusion training employee coaching and counseling substance abuse awareness training outplacement services compensation guidance Employer Liability Management . Under the CSA, we assume many of the employment-related responsibilities associated with the administrative functions, benefit plans administration, and human capital management services we provide. For many of those employment-related responsibilities that are the responsibility of the client or of both the client and us, we may assist our clients in managing and limiting liability. This assistance may include safety-related risk management reviews as well as the implement

BUSINESS

BUSINESS solely on the middle market sector. Our average number of WSEEs per month in our middle market sector in 2023 increased 10.5% from 2022, and the middle market sector as a percentage of our overall WSEE count also increased over this period, representing approximately 26.1% and 24.9% of our total average paid WSEEs during 2023 and 2022, respectively. Clients with an average number of WSEEs exceeding 1,000 paid WSEEs represented 5.5% and 5.4% of our total average paid

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View this 10-K filing on SEC EDGAR