| Workers Compensation |
Note 8: Workers’ Compensation
The Company had three workers’ compensation programs in effect at various points during Fiscal 2021 and Fiscal 2020. The Everest program covered corporate employees and WSEs from July 1, 2017 through June 30, 2018 and the SUNZ program covered corporate employees and WSEs from July 1, 2018 through February 28, 2021.
Effective March 1, 2021, the Company migrated its clients to a guaranteed cost program, pursuant to which the Company’s financial responsibility is limited to the cost of the workers’ compensation premium. The Company funds the workers’ compensation premium based on standard premium rates on a monthly basis and based on the gross payroll applicable to workers covered by the policy. Any final adjustments to the premiums are based on the final audited exposure multiplied by the applicable rates, classifications, experience modifications and any other associated rating criteria.
The following table summarizes the workers’ compensation deposit from continuing operations for Fiscal 2021 and Fiscal 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
Everest
|
|
SUNZ
|
|
|
|
|
|
|
Program
|
|
Program
|
|
Total
|
|
Workers’ Comp Deposit at August 31, 2019
|
|
$
|
—
|
|
1,827,000
|
|
$
|
1,827,000
|
|
Premiums paid
|
|
|
—
|
|
—
|
|
|
—
|
|
Paid in deposits
|
|
|
—
|
|
601,000
|
|
|
601,000
|
|
Claim losses
|
|
|
—
|
|
(1,399,000)
|
|
|
(1,399,000)
|
|
Deposit refund
|
|
|
—
|
|
—
|
|
|
—
|
|
Workers’ Comp Deposit at August 31, 2020
|
|
$
|
—
|
|
1,029,000
|
|
$
|
1,029,000
|
|
Paid in deposits
|
|
|
—
|
|
446,000
|
|
|
446,000
|
|
Claim losses
|
|
|
—
|
|
(934,000)
|
|
|
(934,000)
|
|
Workers’ Comp Deposit at August 31, 2021
|
|
|
—
|
|
541,000
|
|
|
541,000
|
|
Less Current Amount
|
|
|
—
|
|
(155,000)
|
|
|
(155,000)
|
|
Long Term Balance at August 31, 2021
|
|
$
|
—
|
|
386,000
|
|
$
|
386,000
|
The following table summarizes the workers’ compensation deposit from discontinued operations for Fiscal 2021 and Fiscal 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
Everest
|
|
SUNZ
|
|
|
|
|
|
|
Program
|
|
Program
|
|
Total
|
|
Workers’ Comp Deposit at August 31, 2019
|
|
$
|
—
|
|
6,411,000
|
|
$
|
6,411,000
|
|
Premiums paid
|
|
|
—
|
|
—
|
|
|
—
|
|
Paid in deposits
|
|
|
—
|
|
2,107,000
|
|
|
2,107,000
|
|
Claim losses
|
|
|
—
|
|
(4,907,000)
|
|
|
(4,907,000)
|
|
Deposit refund
|
|
|
—
|
|
—
|
|
|
—
|
|
Workers’ Comp Deposit at August 31, 2020
|
|
$
|
—
|
|
3,611,000
|
|
$
|
3,611,000
|
|
Paid in deposits
|
|
|
—
|
|
1,062,000
|
|
|
1,062,000
|
|
Claim losses
|
|
|
—
|
|
(3,434,000)
|
|
|
(3,434,000)
|
|
Workers’ Comp Deposit at August 31, 2021
|
|
|
—
|
|
1,239,000
|
|
|
1,239,000
|
|
Less Current Amount
|
|
|
—
|
|
(356,000)
|
|
|
(356,000)
|
|
Long Term Balance at August 31, 2021
|
|
$
|
—
|
|
883,000
|
|
$
|
883,000
|
The following table summarizes the accrued workers’ compensation liability from continuing operations for Fiscal 2021 and Fiscal 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
Everest
|
|
SUNZ
|
|
|
|
|
|
|
Program
|
|
Program
|
|
Total
|
|
Workers’ Comp Liability at August 31, 2019
|
|
$
|
94,000
|
|
1,312,000
|
|
$
|
1,406,000
|
|
Claim loss development
|
|
|
110,000
|
|
1,628,000
|
|
|
1,738,000
|
|
Paid in losses
|
|
|
—
|
|
(1,399,000)
|
|
|
(1,399,000)
|
|
Workers’ Comp Liability at August 31, 2020
|
|
$
|
204,000
|
|
1,541,000
|
|
$
|
1,745,000
|
|
Claim loss development
|
|
|
50,000
|
|
1,273,000
|
|
|
1,323,000
|
|
Paid in losses
|
|
|
—
|
|
(760,000)
|
|
|
(760,000)
|
|
Workers' Comp Liability at August 31, 2021
|
|
|
254,000
|
|
2,054,000
|
|
|
2,308,000
|
|
Less Current Amount
|
|
|
(133,000)
|
|
(530,000)
|
|
|
(663,000)
|
|
Long Term Balance at August 31, 2021
|
|
$
|
121,000
|
|
1,524,000
|
|
$
|
1,645,000
|
The following table summarizes the accrued workers’ compensation liability from discontinued operations for Fiscal 2021 and Fiscal 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
Everest
|
|
SUNZ
|
|
|
|
|
|
|
Program
|
|
Program
|
|
Total
|
|
Workers’ Comp Liability at August 31, 2019
|
|
$
|
329,000
|
|
4,601,000
|
|
$
|
4,930,000
|
|
Claim loss development
|
|
|
388,000
|
|
5,711,000
|
|
|
6,099,000
|
|
Paid in losses
|
|
|
—
|
|
(4,907,000)
|
|
|
(4,907,000)
|
|
Workers’ Comp Liability at August 31, 2020
|
|
$
|
717,000
|
|
5,405,000
|
|
$
|
6,122,000
|
|
Claim loss development
|
|
|
103,000
|
|
2,639,000
|
|
|
2,742,000
|
|
Paid in losses
|
|
|
—
|
|
(3,583,000)
|
|
|
(3,583,000)
|
|
Workers’ Comp Liability at August 31, 2021
|
|
|
820,000
|
|
4,461,000
|
|
|
5,281,000
|
|
Less Current Amount
|
|
|
(275,000)
|
|
(1,240,000)
|
|
|
(1,515,000)
|
|
Long Term Balance at August 31, 2021
|
|
$
|
545,000
|
|
3,221,000
|
|
$
|
3,766,000
|
|