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INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents the fair value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021, respectively (in thousands):

			Total Carrying Value						Level 1						Level 2						Level 3
September 30, 2022
Assets:
Funds held for clients
Money market funds			$	3,120					$	3,120					$	—					$	—
Available-for-sale securities			55,279						—						55,279						—
Total			$	58,399					$	3,120					$	55,279					$	—
Liabilities:
Contingent purchase consideration(1)			$	2,969					$	—					$	—					$	2,969
Total			$	2,969					$	—					$	—					$	2,969
December 31, 2021
Assets:
Funds held for clients
Money market funds			$	1,116					$	1,116					$	—					$	—
Available-for-sale securities			32,060						—						32,060						—
Total			$	33,176					$	1,116					$	32,060					$	—
Liabilities:
Contingent purchase consideration(1)			$	4,329					$	—					$	—					$	4,329
Total			$	4,329					$	—					$	—					$	4,329

Debt Securities, Available-for-sale

Restricted cash equivalents and investments classified as available-for-sale within funds held for clients consisted of the following (in thousands):

			Amortized Cost						Gross Unrealized Gains (1)						Gross Unrealized Losses (1)						Aggregate Estimated Fair Value
September 30, 2022
Restricted cash equivalents			$	3,120					$	—					$	—					$	3,120
Available-for-sale securities:
Certificates of deposit			985						4						(1)						988
Corporate debt securities			51,079						—						(2,110)						48,969
Municipal bonds			5,310						—						(435)						4,875
U.S. Government agency securities			500						—						(53)						447
Total available-for-sale securities			57,874						4						(2,599)						55,279
Total(2)			$	60,994					$	4					$	(2,599)					$	58,399
December 31, 2021
Restricted cash equivalents			$	1,116					$	—					$	—					$	1,116
Available-for-sale securities:
Certificates of deposit			1,240						7						(4)						1,243
Corporate debt securities			22,597						2						(76)						22,523
Municipal bonds			7,825						3						(24)						7,804
U.S. Government agency securities			500						—						(10)						490
Total available-for-sale securities			32,162						12						(114)						32,060
Total(2)			$	33,278					$	12					$	(114)					$	33,176

(1)Unrealized gains and losses on available-for-sale securities are included as a component of comprehensive loss. As of September 30, 2022 and December 31, 2021, there were 2 and 10 securities, respectively, in an unrealized gain position and there were 104 and 57 securities in an unrealized loss position, respectively. As of September 30, 2022, these unrealized losses were less than $99 individually and $2,601 in the aggregate. As of December 31, 2021, these unrealized losses were less than $11 individually and $114 in the aggregate. These securities have not been in a continuous unrealized gain or loss position for more than 12 months. We do not intend to sell these investments and we do not expect to sell these investments before recovery of their amortized cost basis, which may be at maturity. We review our investments to identify and evaluate investments that indicate possible other-than-temporary impairment. Factors considered in determining whether a loss is other-than-temporary include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the investee, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.

(2)At September 30, 2022 and December 31, 2021, none of these securities were classified as cash and cash equivalents on the accompanying Condensed Consolidated Balance Sheets.

Funds held for clients represent assets that the Company has classified as restricted for use solely for the purposes of satisfying the obligations to remit funds relating to the Company’s payroll and payroll tax filing services, which are classified as client funds obligations on our Condensed Consolidated Balance Sheets.

Funds held for clients have been invested in the following categories (in thousands):

			September 30, 2022						December 31, 2021
Restricted cash and cash equivalents held to satisfy client funds obligations			$	126,690					$	185,213
Restricted short-term marketable securities held to satisfy client funds obligations			7,215						5,559
Restricted long-term marketable securities held to satisfy client funds obligations			48,064						26,501
Total funds held for clients			$	181,969					$	217,273

Investments Classified by Contractual Maturity Date

Expected maturities of available-for-sale securities as of September 30, 2022 are as follows (in thousands):

One year or less			$	7,215
After one year through five years			48,064
Total			$	55,279

X

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI https://asc.fasb.org/topic&trid=2196928

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- Definition

Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments.

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- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258

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