Services that move you forward

Services that move you forward Descriptors Workforce Optimization TM HR and Business Performance Solutions from Insperity: Workforce Optimization Human Capital Management Payroll Services Time and Attendance Performance Management Organizational Planning Recruiting Services Employment Screening Financial Services Expense Management Retirement Services Insurance Services insperity.com 800-465-3800 80-007 SAL-P12-964 Time and

TABLE OF CONTENTS Insperity Solutions Model...2 Our High-Touch Service/High-Tech Platform...4 Workforce Optimization TM... 6 Administrative Relief... 7 Employment Administration... 7 Recruiting and Outplacement Support... 8 Performance Management Support...9 Training and Development... 10 Better Benefits... 12 Benefits Management and Administration... 12 Employee Benefits Overview...13 Life Insurance... 14 Disability Insurance... 14 Reduced Liabilities...17 Employer Liability Management...17 Safety and Workers Compensation Coverage and Claims Resolution... 19 Technology Infrastructure... 21 Employee Service Center SM... 23 Service That Clients Can Count On......26 Expand and Extend Your Business Dollars... 28 MarketPlace... 28 Business Network... 29 Plus Plus Additional Business Performance Solutions... 30 Performance Management... 30 Expense Management... 30 Time and Attendance... 30 Organizational Planning...31 Recruiting Services...31 Employment Screening...31 Retirement Services...31 Insurance Services...31 Payroll Services...31 Financial Services...31

Imagine how much more productive and profitable your business could be if you had a dedicated, full-service human resources management team on your side. When it comes to truly capitalizing on business opportunities and driving success, Insperity helps your business gain a competitive edge. For more than 25 years, we have revolutionized the way businesses operate through innovative, full-service HR practices that enable business owners to be more systematic and strategic about the role that people play in the success of a company. Whether you re looking to align employee performance with company goals or develop a comprehensive training and development program that takes your employees skill sets to the next level, Insperity can design a plan that best suits the specific needs of your business. Infuse your business with the HR practices you need to get ahead. 1

Retirement Services Insperity Solutions Model Insperity helps you stay competitive with HR and business performance solutions designed to make your business run better, grow faster and make more money. Insperity TM Workforce Optimization TM, our premier comprehensive solution, delivers administrative relief, better benefits and reduced liabilities. Or you can choose from our other products and services designed to maximize your efficiency. Payroll Services Time and Attendance Insurance Services Government Compliance Benefits Management Training and Development Performance Management Business Services YOUR BUSINESS Employment Administration Organizational Planning Expense Management Recruiting and Outplacement Support Employer Liability Management Performance Management Support Recruiting Services Financial Services Employment Screening 2011 Insperity, Inc. 2

Workforce Optimization TM Benefits Management Health care: medical, dental and vision Flexible Spending Account plan Life insurance and personal accident insurance Short-term and long-term disability insurance Adoption assistance Commuter benefits Training and Development Certified provider of Continuing Professional Education (CPE) credit More than 3,000 online courses More than 15,000 digital books in business, technology and finance Live, virtual training Leadership development Learning management system Employment Administration Payroll processing Payroll record maintenance and management Payroll compliance Online paystubs and W-2s Payroll management reports Garnishment and deduction administration Employment verification PTO accruals Performance Management Support Performance appraisals Compensation resources and tools Supervisor coaching Job descriptions Reward and recognition Base pay structures Client self-help tools and worksheets for variable and sales pay designs Climate surveys Employer Liability Management Workers compensation plan coverage and claim resolution Employment practices liability insurance Safety review Employee handbooks Termination assistance Employee relations Substance abuse prevention Liability management training Recruiting and Outplacement Support Job description development Wage and salary surveys Process review Interviewing and selection training Online interviewing and selection training Business Services Employee Service Center SM Web-based self-service platform MarketPlace SM business solutions: financial, technology, marketing, human resources MarketPlace consumer offerings: discounts and services Employee communications Government Compliance Government compliance reporting and agency interface Unemployment claims administration FICA, FUTA, SUTA Safety services Drug-free policies and/or administration EEOC administration Job classification review Additional Business Solutions Payroll Services A complete business payroll solution designed to help you easily pay your employees, file your taxes on time and comply with all state and federal payroll requirements. Time and Attendance Collect, analyze and take control of employee attendance and labor data all online and in real time with our TimeStar TM software. Performance Management A full-featured desktop software or Web-based platform that customizes performance reviews, job descriptions and handbooks. It also helps you create policies to align, engage and manage employees for business success. Organizational Planning Industry-leading workforce planning and visualization software that captures a complete database of key employee information while providing insight, alignment and definitive organizational structure. Recruiting Services Experienced, discipline-specific recruiters use their know-how and proven strategies to find you qualified candidates and help managers make the right hiring decisions. Employment Screening A complete solution that offers employment background checks and verification services, drug testing, professional assessments and E-Verify services to help you build a qualified workforce. Financial Services Through our product, Insperity Reveal, as well as strategic alliances with GrowthForce and The Receivables Exchange, we can help you better understand and manage your finances. Expense Management Automate and streamline the expense reporting process, while cutting costs, enforcing company travel policies and providing better visibility into expenditures. Retirement Services Gain access to professionally managed, low-cost plans that minimize the burden of daily administrative compliance, while helping employees achieve their financial goals. Insurance Services Through our alliance with Lockton Affinity, small businesses gain secure, affordable, customizable insurance packages while enjoying the claims service of a Fortune 500 company. 3

High-Touch Service As a client, you ll receive a highly skilled team of professionals that will work with you to develop a customized service delivery plan to help reach your business goals. Meet Your Insperity TM Workforce Optimization TM Team Located at our four regional service centers and many of our district offices, our service team members average more than 15 years of experience in their fields and more than four years tenure at Insperity. Almost all hold a bachelor s degree, and many hold post-graduate degrees and/or specialty certifications. Client Liaison Serves as your main point of contact Addresses any non-payroll needs Payroll Specialist Processes payroll information Generates an accurate and timely payroll Maintains data for a complete and accurate employee file Performance Specialist Analyzes needs to identify areas for performance improvement Provides training and development program recommendations Manages the delivery of online training programs Manager, HR Services Ensures service satisfaction Actively participates in planning and coordinating delivery of services HR Specialist Reviews all HR performance items associated with your service plan Ensures policies, procedures and actions comply with legal requirements and government reporting regulations Safety Consultant Supplements your existing safety procedures Implements and coordinates safety programs Identifies potential safety issues and works with you to address them 4

High-Tech Platform Convenient and Secure Advanced Technology Our high-tech Employee Service Center SM saves you precious time spent answering benefits questions and managing employee paperwork by enabling employees to access the information and answers they need online. A few of the many benefits of our Employee Service Center are: Instant Access available for all paystub, W-2 and PTO balance information Online Enrollment Tools paperless onboarding helps your employees complete new hire and benefits forms in a few simple and secure steps WebPayroll gives authorized personnel the ability to submit and verify company payroll information online, securely and accurately WebReporting provides access to reports with real-time information, restricted secure access for designated employees, customized reports and multiple Microsoft formats Live Support available by phone or email from Insperity s Contact Center specialists 5

Workforce Optimization InsperityTM Workforce OptimizationTM, our most comprehensive solution, provides America s best businesses with a powerful combination of administration relief, better benefits and reduced liabilities. This complete HR and business services bundle includes payroll and employment administration, employee benefits, workers compensation, government compliance, performance management, online training and much more. 6

Administrative Relief Employment Administration You gain time to focus on your business, because Insperity takes care of most of your employee-related paperwork. We have the resources to process your company s payroll and to handle tasks such as W-2s and W-4s, employment verification and payroll management reports. Payroll Administration We work closely with your company s designated payroll contact to deliver your payroll accurately and on time. During your initial 90 days as an Insperity client, your company s designated payroll contact will work with an Insperity payroll implementation specialist, who will provide guidance and help establish the appropriate processes. After this initial period, you will be assigned to a team of payroll specialists who will assist you and your payroll contact with all future payroll needs. WebPayroll allows client owners and authorized staff to submit payroll online, securely and confidentially. Clients can access pre-populated payroll registers and transmit information electronically. WebReporting provides authorized personnel within your company around-theclock access through the Employee Service Center to more than a dozen standardized payroll-related reports, all of which can be customized to better meet your needs. Insperity also handles: FICA, FUTA, SUTA Quarterly reports Check processing Tax filing W-2s and W-4s To make your transition to Insperity as smooth and effortless as possible, and to help you start taking advantage of our comprehensive service offerings from day one, Insperity s orientation team will visit with you to discuss concerns, identify special reporting needs and finalize paperwork. During this meeting held at your work site, we will explain the Insperity relationship and review Insperity s benefits with your employees. We also will assist you in completing necessary employment paperwork to begin the payroll process and enroll employees in Insperity s benefits programs. You can count on Insperity to continually help assimilate all of your new hires in the most efficient way possible. Paycheck Delivery Options You and your employees not only receive your paychecks on time from Insperity, but you also have your choice of delivery methods beyond physical paychecks. Direct Deposit Insperity makes the convenience of direct deposit available to all employees. Net pay is automatically deposited safely and on time, as directed by the employee, into as many as four checking or savings accounts. Debit Card A debit card is an alternative for employees who do not use or qualify for traditional checking accounts. An employee receiving pay via a debit card will have his or her salary automatically deposited each pay period into an electronic-access bank account. epaystub An electronic paystub option is available to all employees. This online means of receiving direct deposit pay information provides confidential, secure delivery of paystub records, and archiving on the Employee Service Center eliminates the clutter and hassle of keeping up with physical paystubs. The system allows client owners and/or payroll contacts to print their company s own paystubs for physical distribution, if preferred. 7

Time and Attendance Tracking Take immediate control of your payroll costs. Our time and attendance services collect and analyze your payroll data in real time, so you can better manage your job costing, PTO tracking and scheduling. Insperity also can allow your existing payroll software to interface with the Employee Service Center SM. Garnishments Insperity will make appropriate garnishment deductions from an employee s check and remit the amount directly to the proper government agency. Garnishments include, but are not limited to, student loans, levies and child support orders. Recruiting and Outplacement Support Your employees are your most important asset. You get more out of your business when you get more out of your people. Studies have proven that strong people practices have the potential to increase your company s productivity and profitability. Time spent dealing with HR issues, however, is time spent away from running your business. Insperity s professionals help by cutting through the clutter of HR practices, working with you to choose and implement the best solution for your company s culture, so you can concentrate on growing your business, instead of dealing with personnel issues. Recruiting Support Our recruiters are immersed in the job market every day. This has provided them with an in-depth knowledge and understanding of the current market that they use to evaluate each aspect of your current recruiting process, and provide you with the guidance and tools you need to make your recruiting practices more proficient and cost-effective. Job Description Development To find a candidate with the proper qualifications for your open position, you must first have a solid understanding of what will be expected of the new employee. Insperity s knowledgeable recruiting professionals will work with you to help you identify and understand the tasks that are expected of the person who will occupy the open position. In addition, our team of industry-specific recruiters will lend you their knowledge of the current market to help you create accurate and effective job descriptions that are aligned with current market trends. By clarifying the needed skills and experience, it is easier to narrow down your field of candidates, allowing you to review applicants who are only the most relevant. Wage and Salary Surveys To attract top talent to your business, you must offer a competitive salary that is in line with the current market expectations. Insperity Recruiting Services accumulates and maintains an extensive database of information about current salary standards and expectations for a wide range of positions. You have the opportunity to use this data as guidance in your business. Our recruiting professionals will help you understand the metrics and apply them to your business, so that you can set reasonable and appropriate salaries for qualified applicants. Process Review Insperity recruiting professionals are well-versed in industry best practices. Their years of recruiting experience have helped them discover which methods prove the most successful. Our practiced recruiters will assess the current state of your recruiting program, help you identify any gaps or ineffective practices and make recommendations on how you can optimize your recruiting process, making it more time-efficient and cost-effective. 8

Interviewing and Selection Training You and your hiring manager will have access to our online training portal, where your hiring managers can search or browse through a multitude of courses and resources. From full-text business books to interactive videos, Insperity s online training and development offers users a variety of materials that can help them become accomplished and successful interviewers. Recruiting Services* Insperity Recruiting Services helps you find the right people for the right jobs in the right way. Our disciplinespecific recruiters are sensitive to your hiring objectives. At your request for direct placement to fill a specific job opening, we will provide you top performing candidates to select from. *These services are available at an additional cost. Performance Management Support Developing employee potential is one more way to help your organization achieve its goals. Your business can experience higher productivity through improved individual and group performance. Insperity provides you with the tools to manage your employees, communicate your goals and evaluate their performance. Your performance specialists will help you with the following essential performance management resources. Pre-Employment Assessments Job Descriptions A job description clearly establishes essential functions of the job so there is no question or confusion regarding an employee s work responsibilities. We can update your existing job descriptions to reflect the jobs employees are performing today, as well as add job functions that address the need to develop new job skills. By working with your managers and employees to fully understand position requirements, we can also create customized job descriptions, all with minimal involvement on your part. Performance Appraisals We can assist you in implementing a performance appraisal system to help determine promotions, bonuses and salary reviews. We are available to help define goals and expectations for each employee. Compensation Plan Assistance Compensation and incentives are proven tools that make hiring, performance reviews and merit increases easier to administer. We can work with you and your key staff to develop base pay plans and provide you with current compensation trends that will motivate employees to meet established performance goals and contribute to the achievement of strategic business objectives. Insperity also can provide you with tools and informative materials to facilitate the development of your company s incentive pay plans. Reward and Recognition Assistance Our HR professionals can work with you to design a reward and recognition program, customized for your company, that will recognize employees you wish to reward for outstanding contributions toward your business goals. Supervisor Coaching Our experienced staff can coach supervisors on the most effective ways to communicate performance feedback to employees. 9

Training and Development The goal of an effective training program is to impact business results through improved employee performance. Whether you re focused on developing employee skills to take your business to the next level, growing your leaders, retaining key performers or responding rapidly to changes in your business environment, we can help you develop a plan to maximize performance. Certified Provider of CPE Credits Insperity is a certified provider of continuing education and training programs by the National Association of State Boards of Accountancy (NASBA). Our accreditation allows us to provide CPE credit for instructor-led courses attended, which may be considered toward licensing or continuing education required to maintain certification in many professions. Online Learning Insperity offers an extensive library of more than 3,000 online courses and many other learning resources, including job aids, learning roadmaps, simulations, online mentoring and test-preparation tools (including practice certification exams) on a variety of topics, including business skills, IT desktop, IT programming and safety. Many online courses have been approved for CPE or PDU credit by the National Association of State Boards of Accountancy (for accountants) or the Project Management Institute (PMI). The SkillSoft credentialing module helps you create and manage certification programs and track credits earned. Books 24 x 7 offers digital access to the full text of more than 15,000 professional books from top authors and publishers in business, technology, finance and a multitude of other subjects. New titles are added every week, ensuring breadth, depth and currency of subject coverage. SkillSoft Leadership Advantage provides targeted learning tracks covering key leadership and development competencies in concise, two-hour learning paths. Learning assets include concept overviews, quick-talk videos from leading industry thought leaders, brief scenario-based learning exercises, executive summaries of today s popular business books, best practice articles, links to tools, self-assessments and more. Live, Virtual Training Insperity s Virtual Learning Center offers live, instructorled training right from your desktop. Participants register online, log in from their computers at a scheduled time using an Internet connection and a telephone line, and interact with a live instructor and other participants via the Web. Virtual training allows remote employees the ability to participate in instructor-led training without the time and expense associated with travel to a classroom location. Classes are scheduled regularly so you can send a few employees at a time, which minimizes the impact of employee absences on your business operations. Learning Management System The Insperity Learning Management System delivers on-demand training history transcripts to clients. All training completed through Insperity trainers, virtual courses and online training courses are documented and available. KnowledgeCenter learning portals offer targeted learning in project management, leadership development, management skills, sales, finance and accounting, MS Office 2007 and 2010, professional foundation skills and DoD 8570. 10

Needs Analysis for Performance Improvement Performance Solutions Our specialists can assist you in identifying and analyzing performance gaps and will recommend solutions to help improve performance. When training is the recommended solution, learning is available in multiple ways. We ll work with you to determine the right approach based on your situation. We can help you systematically address performance challenges in the work environment that go beyond training and development to optimize workplace performance in support of your unique business needs. 11

Better Benefits A solid benefits package is a valuable asset that helps attract and retain high-quality employees. At the same time, it can be an expensive and perplexing proposition for most employers to try to control employee benefits costs through effective plan design and management, while continuing to meet the needs of their employees and maintain high levels of performance and engagement. There are significant costs to employers in terms of the time, money and personnel required for conscientious review and evaluation of the extensive market of insurance carriers and their numerous offerings. Insperity can help eliminate this troublesome drain on your company s resources. Many thriving, productive companies have learned the value of outsourcing to Insperity the evaluation, procurement, management and administration of employee benefits. We also work to balance employee cost-sharing with accessible, expansive network coverage and the availability of appropriate and affordable coverage options for employees. We then provide these benefits directly to the employees in your organization through the co-employment relationship we establish with you. Benefits Management and Administration Insperity s benefits services encompass much more than the actual benefits coverage we provide to employees. To offer our clients relief from the employer activities associated with providing employee benefits, we assume the following employee benefits responsibilities: Plan sponsorship of group health and welfare benefits plans, encompassing medical, dental, vision, life, AD&D and disability insurance; health care flexible spending Plan; and the associated cafeteria plan(s), that permit eligible employees contributions to be made on a pretax basis Benefits cost containment efforts through rigorous plan and insurance carrier analysis, contract negotiation and relationship management, involving multiple nationally recognized insurance carriers Plan eligibility management, including waiting periods and other requirements Enrollment services that include a state-of-the-art, easy-to-use online benefits enrollment system and robust benefits orientation and decision-support resources Comprehensive ongoing employee benefits communications that include a well-staffed call center and a comprehensive online employee self-service information and transaction portal Regulatory compliance responsibilities related to ERISA, PPACA, COBRA, HIPAA, QMCSO, FMLA and more Required nondiscrimination testing on behalf of clients Client assistance with federal, state and local regulatory reporting requirements associated with employersponsored plans Protection for clients, employees and Insperity from financial liability for benefits claims incurred, but not reported on or before the termination date of the plan, by providing a fully insured group health plan that insures payment of such claims Leave and disability administration, regulatory compliance and employee communications COBRA benefits continuation administration 12

Employee Benefits Overview With Insperity, eligible employees have access to quality benefits coverage from premier providers. As an Insperity client, you select a benefits package from among several choices, differentiated by the level of calendar-year deductible and the inclusion or omission of certain benefits programs. You also may make decisions (within established guidelines) about length of waiting period and employee contributions, among other client-specified parameters. Depending on the benefits package you select, and following the decisions you make, Insperity offers eligible employees a wide array of benefits that can include: Health Benefits Insperity benefits packages that include medical coverage generally include two or more choices of medical coverage options from which eligible employees may elect the coverage that best fits their situation. Eligible employees who elect an Insperity medical coverage option may make their health plan contributions on a pretax basis under an associated cafeteria plan (when permitted by their individual tax status). Details on individual benefits packages and the coverage options they include are available from your Insperity Business Performance Advisor. In general, depending on the level of benefits package you select to have Insperity offer employees, Insperity s medical coverage options may include: One or more coverage options that provide both in and out-of-network access. These options generally feature copayments, calendar-year deductibles, coinsurance and annual out-of-pocket maximums. One or more coverage options that provide in-network access only (available only in certain regions of the country). These options may or may not include a calendar-year deductible, but generally feature 100 percent coinsurance and lower annual out-of-pocket maximums. One or more HSA-eligible high deductible health plan (HDHP) options. Insperity s HDHP coverage options offer both in- and out-of-network access and meet government requirements for health savings account (HSA) participation. In order to take advantage of the valuable tax advantages offered by an HSA, an eligible employee who elects to enroll in an Insperity HDHP may be able to set up his/her own personal, individually managed HSA through the Insperity HSA Program, which offers participants the ability to make pretax contributions (or post-tax contributions, depending on the individual s tax status) via convenient payroll deduction. If desired, Insperity clients who select an HDHP-level or Value-level benefits package also may choose to provide employees eligible for pretax benefits an Insperity HSA employer contribution. Two choices of Insperity employer contribution level and at least two choices of contribution frequency are available for client selection. An indemnity coverage option for employees who wish to elect medical coverage, but who live in an area not served by any Insperity medical insurance carrier network. Prescription Benefits Employees enrolled in an Insperity medical coverage option can take prescriptions to any participating pharmacy in the United States, show their ID cards and pay only a copayment. (HDHP options require prior satisfaction of deductible.) There is no claim to file if the prescription is filled at a participating pharmacy. Prescriptions may be filled at non-participating pharmacies at a higher out-ofpocket expense. Dental Benefits Insperity s dental benefits include 100 percent coverage on all preventive and diagnostic care, which includes cleaning, exams and x-rays. Participants are covered at different levels for basic (restorative) services, major (prosthodontic) services and for orthodontic services. A deductible must first be met on restorative and prosthodontic services. Preventive and diagnostic, basic and major services are covered up to a maximum of $1,500 per person per calendar year. The dental plan includes rewards for receiving preventive and diagnostic dental care that can be used for out-of-pocket expenses in future years. Vision Benefits Eligible employees and their covered dependents can receive eye care benefits from an extensive nationwide network of providers. Coverage includes routine eye examinations and benefits toward eyeglasses and contact lenses. Laser vision correction is considered elective surgery and is not a covered benefit under Insperity s vision benefits, but discounts are available on laser eye surgery, including LASIK and PRK procedures. 13

Health Care Flexible Spending Account Plan Insperity s Health Care Flexible Spending Account Plan (Health Care FSA) allows eligible employees who choose to participate to make pretax contributions for reimbursement of qualified health care expenses incurred while an active employee during the plan year. The Health Care FSA is open to most eligible full-time employees who are actively at work, regardless of medical coverage participation; however, individuals who intend to establish a health savings account (HSA) should not enroll in the Health Care FSA, as participation in the Health Care FSA may affect the tax deductibility of their HSA contributions. The information in this section is intended to be only an overview of the major features of the Insperity employee benefits programs. Should there be a discrepancy or conflict between the information presented here and the actual plan documents and insurance contracts, the plan documents and insurance contracts will govern. Insperity reserves the right to amend or discontinue any plan or program at any time at its sole discretion. Life Insurance Basic Term Life Insurance Employees who meet eligibility and enrollment requirements receive basic term life insurance coverage equal to 1x base annual earnings,* with a minimum of $15,000 and a maximum of $50,000. Life insurance benefits are reduced beginning at age 65. Insperity pays the full cost of this coverage. Voluntary Group Universal Life Insurance Insperity s voluntary group universal life benefit can provide an added layer of financial protection for eligible employees and their families. Employees pay the full cost of voluntary life insurance coverage through after-tax payroll deductions. There are six coverage levels to choose from (in multiples of the employee s base annual earnings*), up to a maximum benefit of $2,500,000. Evidence of insurability will be required if an employee does not enroll within 30 days of his/her initial eligibility date, or if that employee selects a coverage level of more than three times his/her base annual earnings or $500,000 whichever is less.* Regardless of whether the employee elects to purchase voluntary life insurance coverage, the employee s spouse or domestic partner may be eligible for coverage, choosing from one of several coverage levels from $10,000 to $200,000 (spouse/domestic partner coverage may not exceed the amount for which the employee is eligible.) Evidence of insurability will be required if a spouse/domestic partner is not enrolled within 30 days of becoming eligible, or if the employee elects spouse/domestic partner coverage of more than $20,000. If either the employee or the employee s spouse/domestic partner is issued coverage, dependent children also are eligible for two defined levels of coverage. Employees also may participate in the Group Universal Life Cash Accumulation Fund, a voluntary after-tax payroll deduction designed to increase participants savings with a guaranteed minimum interest rate. Personal Accident Insurance (PAI) Personal Accident Insurance (PAI; also known as accidental death and dismemberment insurance) pays a benefit for an accidental death occurring within 365 days of a covered accident, or for an accidental loss of a limb or eyesight. With this coverage, employees are covered no matter where they are whether at work, home or on vacation. Basic PAI Employees who meet eligibility and enrollment requirements receive basic PAI coverage equal to one times their base annual earnings,* with a minimum of $15,000 and a maximum of $50,000. Basic PAI benefits are reduced beginning at age 65. Insperity pays the full cost of this coverage. Voluntary PAI For an extra measure of security, eligible employees may purchase voluntary PAI coverage for employee-only or for employee-and-family coverage. Coverage levels for employee-and-family are based on a multiple of the employee s earnings. Employees pay the full cost through after-tax payroll deductions. An employee may select from several coverage levels (in multiples of the employee s base annual earnings*), up to a maximum benefit of $2,000,000. Voluntary PAI benefits are reduced beginning at age 70. Disability Insurance Basic Short-Term and Long-Term Disability Available only in select Insperity packages. Employees must meet eligibility and enrollment requirements in order to receive basic disability benefits. Short-term disability (STD) coverage provides replacement income for an eligible employee who misses work for a short period of time due to a medical condition. The program pays up to 60 percent of the employee s base weekly earnings,* up to $2,308 per week. Benefits begin on the 15th day of STD (following a two-week initial waiting period), and generally continue until the end of the benefit period, or until the employee no longer qualifies for benefits, whichever occurs first. STD benefits are reduced by other sources of income that may be payable to the employee because of his/her disability. 14

An eligible employee may qualify for long-term disability (LTD) benefits after being disabled for six continuous months. Long-term disability benefits generally continue until the end of the benefit period, or until the employee no longer qualifies for benefits, whichever occurs first. During the first 30 months of disability (six months STD, 24 months LTD), an employee is considered disabled if he is unable to perform his/her regular occupation or a qualified alternative, or if he/she has a loss of earnings of at least 20 percent. After 30 months, an employee is considered disabled if he/she is unable to perform any occupation for which he/she is (or may reasonably become) qualified by education, training or experience, or if the employee has a loss of earnings of at least 20 percent. LTD benefits replace up to 60 percent of base monthly earnings* (up to the maximum benefit of $10,000 per month). LTD benefits are reduced by other sources of income that may be payable to the employee because of his/her disability. Voluntary Short-Term and Long-Term Disability Eligible employees may be able to purchase voluntary STD and LTD coverage through after-tax payroll deduction. Employees who are covered by the basic disability program are not eligible for voluntary disability. The benefits payable under voluntary disability are identical to those paid under basic disability (described above). Evidence of insurability is required if the employee applies for voluntary disability more than 30 days after becoming eligible. 15 *NOTE: Base annual earnings include base annual earnings paid by Insperity, excluding bonuses and overtime, but including any commissions. Coverage amounts based on base annual earnings are rounded to the next higher 1,000. Base weekly earnings include base annual earnings as paid by Insperity, excluding bonuses and overtime, but including any commissions, divided by 52. Base monthly earnings include base annual earnings as paid by Insperity, excluding bonuses and overtime, but including any commissions, divided by 12. Employee Assistance Program Through Insperity, employees can access a one-stop, fully integrated employee assistance program (EAP) that can help improve the quality of life both on and off the job. The program offers assistance with concerns that have the potential to interfere with workplace effectiveness, as well as address issues related to: Emotional well-being Addiction and recovery Stress management Parenting and child care Wellness and nutrition Resources for older adults Financial issues Marriage and family concerns

Educational Assistance Available only with certain benefits packages Insperity supports ongoing educational pursuits that can help enhance professional growth. Eligible employees may participate in the Educational Assistance Program and receive reimbursement for qualified educational expenses as follows: Up to a maximum of $1,500 per calendar year for approved graduate and/or undergraduate college courses taken as part of an employee s degree program at an accredited institution Up to a maximum of $500 per calendar year for approved continuing educational expenses (including courses taken at an accredited trade or vocational school, business school or through a professional association) The maximum educational assistance benefit an employee may receive for courses completed in one calendar year is $1,500. Specific details are provided in the program s terms and conditions. 529 College Savings Plan Information Employees can help offset rising college costs by investing in a 529 college savings plan. Insperity provides information on sources employees can review when selecting a plan. All 529 plans are available to any U.S. resident, regardless of state of residency, and an individual may establish a 529 college savings plan with any provider of his/her choosing. Periodic contributions may be made by direct deposit or automatic bank account transfers. 529 plans offer a variety of tax and investment benefits, and they can be set up for any person the employee chooses. The money can be used for qualified expenses at most accredited colleges and universities nationwide. Adoption Assistance Insperity will reimburse qualifying adoption expenses incurred through private adoption or through licensed adoption agencies that become final after the employee satisfies the requirement of six months of continuous full-time service with Insperity. An employee may receive up to $1,500 for each such qualified adoption. Specific details are provided in the program s terms and conditions. Commuter Benefits Except for certain individuals who may be excluded by applicable IRS guidelines, full-time employees are eligible to participate in the Insperity commuter benefits program in order to pay for qualified mass transit and parking expenses with pretax dollars. WageWorks, a nationwide provider of commuter benefits programs, administers Insperity s program and also offers discounted passes to help further reduce commuting costs. WageWorks supports transportation options in more than 140 metropolitan markets. Credit Union Following an initial deposit, employees and their family members can enjoy the benefits of a full-service credit union via convenient payroll deductions. Credit union services include savings, checking and money market accounts, ATM card, CDs, IRAs, fixed interest credit cards with no annual fees, and auto, consumer, mortgage and home improvement loans. Credit union services are available immediately upon hire. 16

Reduced Liabilities Employer Liability Management Services Employer/employee disputes are among the fastestgrowing areas of litigation in the United States today. With Insperity, you won t have to face employer liability issues alone. We ll help you manage your risks for employee/employer litigation. We also can help you manage your employer obligations more effectively. Employment Practices Liability Insurance Employers today must protect themselves and their companies against employment-related claims that can seriously harm profitability. Insperity provides access to this valuable protection as part of the Client Service Agreement, through an Employment Practices Liability Insurance (EPLI) policy. The EPLI policy covers employmentrelated wrongful termination, discrimination, workplace torts and sexual harassment. All claims are subject to the terms, conditions and exclusions of the EPLI policy in effect at the time of the claim during the co-employment relationship with Insperity. Government Compliance, Reporting and Agency Interface As a business owner, you not only have to keep up with running your business, but you also have to stay on top of the changing government regulations that affect your business. Compliance with federal and state laws and regulations is mandatory. We assist you with much of the paperwork involved in remaining compliant with all applicable laws and regulations. Fair Credit Reporting Act When the Insperity background specialist team assists in processing pre-employment background screenings, services also include administrative support to ensure compliance under the Fair Credit Reporting Act. Pre-adverse and adverse action requirements are followed when information obtained from a background report could be used, in whole or in part, to make a negative hiring decision. The background specialist team also ensures that appropriate forms and signatures are provided for approval to proceed with a pre-employment background screening request. EEOC Compliance Administration Discrimination and harassment charges can put your business at great financial and operational risk. To manage these risks, Insperity s team of experienced Equal Employment Opportunity specialists are trained to assist you with claims, draft responses to government agencies and provide you with the necessary information to determine how each case should be handled, in order to minimize your financial risks and business liability. Labor Law Compliance Posters State and federal regulations require employers to display mandatory labor law posters where employees can access them during the normal course of the workday. Insperity provides you with all mandatory state and federal compliance posters. In addition, you will automatically receive replacement posters any time a mandatory change is made to your state or federal labor/employment law postings. Unemployment Claims Administration Insperity has a staff of trained unemployment claims specialists who process claims resulting from separations of employment at all worksite locations in all states. Our staff investigates separation issues, responds to the appropriate state unemployment agency and presents the positions of both Insperity and the client owner. Our claims specialists work directly with you on contested claims. Generally, both the supervisor and an Insperity representative will participate in appeal hearings. Insperity audits all charges to the unemployment state tax accounts for accuracy. The unemployment tax burden is a critical employer cost. The timely management of claims, as well as charge verification follow-ups, helps to prevent inaccurate charges. 17

Employee Handbook Insperity endorses a proactive approach to establishing strong HR practices that clearly communicate performance expectations to employees through written policies and procedures. In the area of employee communications, Insperity becomes a valuable resource. This begins with a review of your company s existing policies to identify potential problems or omissions. Then, we assist you in revising the policies to bring them into compliance with current employment laws and other regulations. We also save you time by providing you with an employee handbook composed of standard, compliant written policies. All employees are required to sign and return acknowledgements indicating they have received the handbook and understand the performance expectations contained within. This practice helps ensure compliance with current laws and regulations, and it also clarifies employees understanding of workplace rules. Employee Relations Our experienced HR specialists are available to counsel on-site supervisors on any HR issue, including disciplinary actions. Supervisors learn how to handle disciplinary situations and take the steps needed, including verbal counseling and proper written documentation. Presentations on Insperity s employee assistance program are available to increase employee awareness of how to get the help needed to address personal issues, rather than having those problems negatively affect job performance. Liability Management Training Insperity provides a supervisor orientation program that reviews the responsibilities of the supervisor as operations manager, people manager, company agent and caretaker of the company culture. The program provides an overview of the resources that are available to assist supervisors in successfully carrying out their daily responsibilities. Supervisors must understand the rationale for company policies, their roles in policy administration and the adverse business consequences for failure to carry out those roles. Our HR specialists routinely train supervisors on key policy issues, such as sexual harassment awareness, anti-harassment policies, workplace violence prevention, interviewing techniques, performance appraisal skills, employee counseling, substance abuse prevention and proper utilization of the employee assistance program. performance and misconduct. Consulting with us prior to implementation will go a long way toward ensuring that the termination is properly documented and that any affected employee has been afforded the rights to which that employee is legally entitled. Outplacement Services Transitions after layoffs can be difficult times. Insperity understands and supports outplaced employees to help them optimize their employment options. Insperity maintains an alliance relationship with a major, national firm that offers Insperity clients preferred pricing on career services, including outplacement, leadership development, coaching and career development. In addition, employees receive extended access to the Employee Service Center SM, where they can find comprehensive outplacement information and careerfocused online learning courses. Through the Insperity Talent Network, displaced employees can create an online resume profile and view and apply for openings at Insperity corporate and client locations. Substance Abuse Awareness and Drug-Free Policies Employees who abuse controlled substances and/or alcohol may create serious liabilities for an employer. We will explain Insperity s Drug-Free Workplace Policy in detail and assist you in administering it at your company location. Alcohol and drug addiction exists in every industry in America, no matter the size, location or makeup of the workforce. Employees who abuse alcohol or drugs present a variety of problems for employers, especially if the abuse occurs on the job. Insperity s services include helping you develop procedures; conduct post-offer, pre-employment drug testing; conduct post-accident drug testing; and provide services of licensed and/or certified substance abuse professionals as part of the employee assistance program. Termination Assistance One of the more difficult aspects of operating a business involves making a decision to terminate an employee. Insperity s trained HR professionals can instruct supervisors on how to properly implement layoffs, as well as how to handle terminations for unsatisfactory 18

Safety and Workers Compensation Coverage and Claims Resolution Our Safety Services team provides extensive safety consultation, at your request, to help you minimize unnecessary fines and provide a safe working environment for employees. Safety Review Through Insperity, your company can receive, at no additional cost, the kind of comprehensive safety services often available only to big companies with large safety budgets. Our field safety consultants are professionals with qualified experience in safety and risk management. They offer practical solutions to your safety and risk management problems. Basic Safety Program Insperity will assist your company in developing a customized safety program based on your company s needs. Our basic program includes: Developing a plan to improve health and safety loss control experience Developing a management safety policy statement and outlining responsibilities Designing a safety program recordkeeping system Evaluating and updating safety and health education and training components Evaluating and documenting work/safety rules and/or procedures Auditing and self-inspection Establishing an accident investigation program Reviewing and revising safety programs as needed Hazard Identification Insperity works closely with you to determine your company s needs for safety improvement. Insperity will come to your workplace and/or jobsite and conduct safety inspections to identify any potential hazards. Our safety consultants will analyze your industry exposures, hazards and controls. Then, we will consult with your management to develop measures to correct hazards, reduce exposure and slash your potential loss causes. Safety Program Audit Our safety consultants will review the content and the implementation of your current safety program. We also will analyze your loss experience and compare it to the appropriate industry average. Finally, we will review and analyze your losses by type, cause and frequency and suggest ways to better control them. 19