GVHR » Topics » Because we assume the obligation to make wage, tax and regulatory payments of behalf of our clients, we are exposed to certain credit risks with respect to our clients.

These excerpts taken from the GVHR 10-K filed Mar 16, 2009.
Because we assume the obligation to make wage, tax and regulatory payments on behalf of our clients, we are exposed to certain credit risks with respect to our clients.

 

Under the terms of our professional services agreement, for clients serviced on a co-employed basis we generally assume responsibility for and manage the risks associated with each of our client’s employee payroll obligations, including the payment of salaries, wages and associated taxes, and, at the client’s option, the responsibility for providing group health, welfare and retirement benefits to each client employee. In this “co-employment” relationship, we directly assume these obligations, and unlike payroll processing service providers, we issue payroll checks to each client employee drawn on our own bank accounts. In several states, we are required to pay wages, payroll taxes and other amounts related to payroll regardless of whether the client timely funds such payments to us.  For clients serviced either on a co-employed or non co-employed basis, who meet certain financial underwriting requirements, Gevity may issue payroll to a client’s employees prior to irrevocable receipt of payroll, taxes and associated service fees. If we are unable to collect these payments from our larger clients, there may be a material adverse effect on our results of operations, financial condition and cash flows.

 

Because we assume the obligation to make wage, tax and
regulatory payments on behalf
of our clients, we are exposed to
certain credit risks with respect to our clients.



 



Under
the terms of our professional services agreement, for clients serviced on a
co-employed basis we generally assume responsibility for and manage the risks
associated with each of our client’s employee payroll obligations, including
the payment of salaries, wages and associated taxes, and, at the client’s
option, the responsibility for providing group health, welfare and retirement
benefits to each client employee. In this “co-employment” relationship, we
directly assume these obligations, and unlike payroll processing service
providers, we issue payroll checks to each client employee drawn on our own
bank accounts. In several states, we are required to pay wages, payroll taxes
and other amounts related to payroll regardless of whether the client timely
funds such payments to us.  For clients
serviced either on a co-employed or non co-employed basis, who meet certain
financial underwriting requirements, Gevity may issue payroll to a client’s
employees prior to irrevocable receipt of payroll, taxes and associated service
fees. If we are unable to collect these payments from our larger clients, there
may be a material adverse effect on our results of operations, financial
condition and cash flows.



 



Because we assume the obligation to make wage, tax and
regulatory payments on behalf
of our clients, we are exposed to
certain credit risks with respect to our clients.



 



Under
the terms of our professional services agreement, for clients serviced on a
co-employed basis we generally assume responsibility for and manage the risks
associated with each of our client’s employee payroll obligations, including
the payment of salaries, wages and associated taxes, and, at the client’s
option, the responsibility for providing group health, welfare and retirement
benefits to each client employee. In this “co-employment” relationship, we
directly assume these obligations, and unlike payroll processing service
providers, we issue payroll checks to each client employee drawn on our own
bank accounts. In several states, we are required to pay wages, payroll taxes
and other amounts related to payroll regardless of whether the client timely
funds such payments to us.  For clients
serviced either on a co-employed or non co-employed basis, who meet certain
financial underwriting requirements, Gevity may issue payroll to a client’s
employees prior to irrevocable receipt of payroll, taxes and associated service
fees. If we are unable to collect these payments from our larger clients, there
may be a material adverse effect on our results of operations, financial
condition and cash flows.



 



These excerpts taken from the GVHR 10-K filed Mar 17, 2008.

Because we assume the obligation to make wage, tax and regulatory payments of behalf of our clients, we are exposed to certain credit risks with respect to our clients.

        Under the terms of our professional services agreement, for clients serviced on a co-employed basis we generally assume responsibility for and manage the risks associated with each of our client's employee payroll obligations, including the payment of salaries, wages and associated taxes, and, at the client's option, the responsibility for providing group health, welfare and retirement benefits to each client employee. In this "co-employment" relationship, we directly assume these obligations, and unlike payroll processing service providers, we issue payroll checks to each client employee drawn on our own bank accounts. In several states, we may be required to pay taxes, benefits and other amounts related

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to payroll regardless of whether the client timely funds such payments to us. For clients serviced either on a co-employed or non co-employed basis who meet certain financial underwriting requirements, Gevity may issue payroll to a client's employees prior to irrevocable receipt of payroll, taxes and associated service fees. If we are unable to collect these payments from our larger clients, there may be a material adverse effect on our results of operations, financial condition and cash flows.

Because we assume the obligation to make wage, tax and regulatory payments of behalf of our clients, we are exposed to certain credit risks with respect to our clients.





        Under the terms of our professional services agreement, for clients serviced on a co-employed basis we generally assume responsibility for and manage
the risks associated with each of our client's employee payroll obligations, including the payment of salaries, wages and associated taxes, and, at the client's option, the responsibility for
providing group health, welfare and retirement benefits to each client employee. In this "co-employment" relationship, we directly assume these obligations, and unlike payroll processing
service providers, we issue payroll checks to each client employee drawn on our own bank accounts. In several states, we may be required to pay taxes, benefits and other amounts related



27









to
payroll regardless of whether the client timely funds such payments to us. For clients serviced either on a co-employed or non co-employed basis who meet certain financial
underwriting requirements, Gevity may issue payroll to a client's employees prior to irrevocable receipt of payroll, taxes and associated service fees. If we are unable to collect these payments from
our larger clients, there may be a material adverse effect on our results of operations, financial condition and cash flows.





This excerpt taken from the GVHR 10-K filed Mar 16, 2007.
Because we assume the obligation to make wage, tax and regulatory payments of behalf of our clients, we are exposed to certain credit risks with respect to our larger clients.
 
Under the terms of our professional services agreement, we generally assume responsibility for and manage the risks associated with each of our client’s employee payroll obligations, including the payment of salaries, wages and associated taxes, and, at the client’s option, the responsibility for providing group health, welfare and retirement benefits to each client employee. In this “co-employment” relationship, we directly assume these obligations, and unlike payroll processing service providers, we issue payroll checks to each client employee drawn on our own bank accounts. Our obligation to make these payments is fixed for the period of time in which a client’s employees remain co-employees of ours, even if the client fails to satisfy its contractual obligation to us to remit its payroll, taxes and associated service fees. If we are unable to collect these payments from our larger clients, we may face significant adverse impact.
 

"Because we assume the obligation to make wage, tax and regulatory payments of behalf of our clients, we are exposed to certain credit risks with respect to our clients." elsewhere:

Barrett Business Services (BBSI)
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