1. PEO Pricing Randy Wadle, CEO

2. Agenda

3. Session Objectives Review pricing functionality that is not frequently used but very useful and powerful We will NOT be reviewing the standard PEO/ASO pricing or Benefits Pricing We’ll be moving fast…primary focus is exposure, not training Mostly PowerPoint

4. Pricing Configuration

5. FUTA Credit Reduction State Level FUTA Tax Adjustments Defined on State Master Defaulted onto the Pricing State Can be added to the standard FUTA (.6) on proposal outputs

6. FUTA Credit Reduction

7. Minimum Admin Fees Default Admin Fee form Per Account (validation) Per Head (validation & default on Pricing Batch for payroll setup Discount threshold minimums also validated Rules in place to insure minimums are met, discount thresholds and default admin form, before submission

8. Discount Thresholds Work Comp Premium Discount Minimum Admin Per Head/Account Max SUTA discount (off base bill rate Gross Profit discount allowed Only used in Target GP admin method

9. Work Comp Pricing & Profit Work Comp Mod Method Set on Default Information form Use Premium Discount Table: pulls discount based on manual premium Use Client’s Mod: pull from PricingBatch.ClientExperienceMod From Pricing Batch: pull from PricingBatch.BillingClientModifier Profit Calculation Method Set on WC Policy form Use Policy Cost: Profit = PricingCode.NetCompRate – RateSheet.FundingRate Use Client ELR: Profit = PricingCode.NetCompRate – (RateSheet.FundingRate + PricingBatch.ClientELR Pricing Batch Client ELR defaults from Policy

10. Pricing State SUTA Cutoff Override Adjust the state cutoff Pricing Policy vs Coverage Policy Client Modifier vs Premium Discount to adjust pricing

11. Pricing Code Work Comp Exempt Wages Override the NetCompRate Using “Turnover” for more accurate SUTA profit

12. Contract Types

13. Contract Type Effect on Pricing Default at Client Master but carried on Pricing Batch Locked on CM after submit Pricing specific for business model Admin fees Work comp discounts Underwriting approvals Metadata Work comp model Legal Entity selection Use Client SUTA

14. Contract Type Effect on Workflow Template Task Contract Type criteria Use “AND” groups to join conditions

15. Contract Type Effect on Header Links Header Links (Reports, Action, Dataform Links) compound condition Use “Condition Expression to join conditions

16. Surcharges

17. Surcharge Type Record Layout

18. Surcharge Type Configuration Surcharge Type: identifier for the surcharge Surcharge Code: unique code for the surcharge type. Can be used in Excel lookups Surcharge Group: reporting only Recurring: One time or a recurring surcharge Minimum Bill Rate: rule validates that users cannot charge lower than minimum Default Bill Rate: defaults to this fee when the surcharge record is created Include in Profit: if checked, surcharge records of this type are included in profit calc Cost for profitability: if used in profit calc, the cost is pulled from this field Per EE/Frequency: if checked, the surcharge is charge for each EE Commissionable: if checked, any users with surcharge commissions will get paid on this revenue Hide in Quick Select: used for surcharge dependencies to suppress bundled items Is Clone: if checked, surcharge records are created Surcharge Type Fields

19. Surcharge Type Bundles Use Surcharge Type Dependencies to create surcharge bundles when adding to workspace

20. Sales Entities / Commissions

21. Types of Sales Entity Internal Sales: users that work for the PEO and are members of the sales department Broker: organization records that are Category=Broker Referral Partner: same as broker Agent: contact that works for a broker or partner

22. Multi Year Commissions Commission Timelines To setup different schedules as a deal ages For example, John Doe gets 20% of admin for first year of deal, 10% for second year, 0% after second year This could be done on one commission record Expiring Commission records To setup different commission schedules as the salesperson tenure increases For example, John Doe earns 10% of admin for deals he sells in first year, 15% for deals in the second year, and 20% in third year. This would require 3 separate commission records

23. Sales Entity Defaults Admin Fees Overrides the Default Admin Fee setting Per Head Per Account Sales Coordinator Will update the Client Team form Contract Type Will override the default contract type from the Default Info

24. Renewal Pricing

25. Renewal Pricing Overview ClientSpace is designed to be starting point for updates to pricing data (admin, taxes, comp, other insurance) Most PEOs reprice annually unless circumstances require an advanced schedule The new Pricing Console (Pricing Batch, State, Code) will be pushed through the configured Renewal Underwriting process When the new Pricing Console is activated, the previous pricing information will be expired Pricing History is maintained in ClientSpace

26. Clone the Pricing Batch When pricing is approved, no user is able to edit pricing; even global admins Cloning the pricing batch will create a new set of pricing records that can be edited The Pricing Batch (and related Pricing States and Codes) will be pushed through the Renewal Underwriting workflow

27. Clone the Pricing Batch Optionally use New WC Rates or New SUTA Rates If no checked, the rates will be cloned directly from the existing batch After clone, there are two pricing sets The “new” renewal pricing is editable

28. Renewal Underwriting Workflow action links on the Pricing Batch, not the Client Master Alternate Renewal Underwriting workflow When the new batch gets activated, the old batch is archived