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New Federal Legislation Enhances Value of Insperity Services and Removes Sales Obstacles

HOUSTON--(BUSINESS WIRE)--Dec. 17, 2014-- Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions for America’s best businesses, today commented on the U.S. Congress’ approval of the federal Small Business Efficiency Act (SBEA), which will provide additional regulatory certainty and creditability to Professional Employer Organizations (PEO) and enhance the value of Insperity’s PEO services. The SBEA passed the Senate along with the tax extenders bill Tuesday evening and is on its way to the president for signature.

“The passage of the Small Business Efficiency Act represents a major milestone for the PEO industry in general and Insperity in particular, providing a stamp of approval on the industry we helped to establish in 1986,” commented Paul J. Sarvadi, Insperity chairman and chief executive officer. “The SBEA will provide certified PEOs with successor employer status for federal payroll taxes which eliminates the potential for double taxation of FICA and FUTA when a business contracts with a PEO during the year. When the SBEA is fully implemented, we expect this provision to reduce our first year costs associated with this double taxation and eliminate a sales hurdle that we have historically faced during the year with many prospects.”

Mr. Sarvadi added, “We commend the action of Congress in showing its support of small and medium-sized businesses throughout America by passing this significant legislation and thank all of the co-sponsors of the legislation. In particular, we would like to acknowledge the leadership of Congressman Kevin Brady, who has long recognized the vital role that these businesses serve in our communities and the many ways in which a PEO such as Insperity helps businesses succeed.”

“For over 10 years, Insperity has been strongly advocating for the passage of a federal PEO bill, and we are very pleased that the SBEA has become a reality,” said Sarvadi. “The SBEA will provide a federal regulatory framework and certification program in which defined financial standards will enhance the reputation and value of the PEO industry and provide assurances to clients, prospects and their advisors.”

Additionally, the SBEA will clarify businesses’ continued eligibility for federal tax credits while utilizing certified PEO services. Mr. Sarvadi further added, “This removes another sales hurdle as it provides assurance to our business prospects that they will not lose their eligibility for federal tax credits when becoming our client.”

The SBEA was originally included as part of H.R. 647, the Achieving a Better Life Experience (ABLE) Act of 2014, which overwhelmingly passed a vote in the House of Representatives. The bill was then merged with H.R. 5771, the Tax Increase Prevention Act of 2014, which also passed the House and then the Senate.

About Insperity

Insperity, a trusted advisor to America’s best businesses for more than 28 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity® Business Performance Advisors offer the most comprehensive suite of products and services available in the marketplace. Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Financial Services, Expense Management, Retirement Services and Insurance Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees. With 2013 revenues of $2.3 billion, Insperity operates in 57 offices throughout the United States. For more information, visit http://www.insperity.com.

The statements contained herein that are not historical facts are forward-looking statements within the meaning of the federal securities laws (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). You can identify such forward-looking statements by the words “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,” “opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,” “predicts,” “appears,” “indicator” and similar expressions. Forward-looking statements involve a number of risks and uncertainties. In the normal course of business, Insperity, Inc., in an effort to help keep our stockholders and the public informed about our operations, may from time to time issue such forward-looking statements, either orally or in writing. Generally, these statements relate to business plans or strategies, projected or anticipated revenues, earnings, unit growth, profit per worksite employee, pricing, operating expenses or other aspects of operating results. We base the forward-looking statements on our expectations, estimates and projections at the time such statements are made. These statements are not guarantees of future performance and involve risks and uncertainties 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 could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: (i) adverse economic conditions; (ii) regulatory and tax developments and possible adverse application of various federal, state and local regulations; (iii) the ability to secure competitive replacement contracts for health insurance and workers’ compensation contracts at expiration of current contracts; (iv) increases in health insurance costs and workers’ compensation rates and underlying claims trends, health care reform, financial solvency of workers’ compensation carriers, other insurers or financial institutions, state and federal unemployment tax rates, liabilities for employee and client actions or payroll-related claims; (v) failure to manage growth of our operations and the effectiveness of our sales and marketing efforts; (vi) changes in the competitive environment in the PEO industry, including the entrance of new competitors and our ability to renew or replace client companies; (vii) our liability for worksite employee payroll, payroll taxes and benefits costs; (viii) our liability for disclosure of sensitive or private information; (ix) our ability to integrate or realize expected returns on our acquisitions; (x) failure of our information technology systems; and (xi) an adverse final judgment or settlement of claims against Insperity. These factors are discussed in further detail in Insperity’s filings with the U.S. Securities and Exchange Commission. Any of these factors, or a combination of such factors, could materially affect the results of our operations and whether forward-looking statements we make ultimately prove to be accurate.

Except to the extent otherwise required by federal securities law, we do not undertake any obligation to update our forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated events.

Source: Insperity, Inc.

Insperity, Inc.
Investor Relations Contact:
Douglas S. Sharp, (281) 348-3232
Senior Vice President of Finance,
Chief Financial Officer and Treasurer
or
News Media Contact:
Jason Cutbirth, (281) 312-3085
Senior Vice President of Marketing
jason.cutbirth@insperity.com