PEO Consulting s Pricing & Costs

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1 Total Employment Investment Estimate For: Prepared by: Sales Rep Name Date: 9/4/14 Enter Prospect Co. Name Work # Employees Annual WC Rate per Earned Group # State 20 Wages WC Code $100 Wages SUI Rate % 1 AK 1 $200, % 2 AK 19 $950, % HR Factors and Administration: Earners Over Social Security Limit? Turnover Percentage: 401k Match (Total annual dollar match) of Pay Periods Current Annual HR Administration Costs / Fees (replaced by HRO Service) : Payroll Service / Costs Retirement Plan Fees Yes (*) (informational only) 20.00% $3, $3,500 $2,500 (Choose) HR Wage Increase or Decrease Workers Compensation Factors: Experience Modifier: Discount: Expense Constant: Other Adjustments: (only if applicable) 125 Plan Information: 1.00? Yes 0.00% Flex Spending? $300 Dependent Care? Employee Insurance Benefits Information: Total Annual Annual Employee Net Annual Employer Cost Medical $120,000 $66,000 $54,000 Dental Vision Group Life Group STD Group LTD Prospect/Client Input Page Total Employment Estimate, Based on Above Factors: Total Annual Wages (non-benefits $1,150,000 portion) % Social Security $62, % (Reduced from 6.2% by 125 Plan and/or High Earner wages) Medicare $15, % (Reduced from 1.45% by 125 Plan) Federal Unemployment $1, % (Includes 20% turnover) State(s) Unemployment $26, % (Includes 20% turnover) Workers Compensation $6, % HR Services Costs $6, % (Current HR 'hard costs' to be replaced by HR Service) 401k Match $3, % EAP 0.00% Employer Portion of Ins. Benefits $54, %

2 My HRO/PEO Firm My HRO/PEO Firm Charge Worksheet Area Billing Method Unbundled Calendar Year Cost Comparison My HRO/PEO Net WC Charge WC Cost per HRO/PEO F Firm Admin Their Current My HRO/PEO Firm Their per $100 Wages $100 Wages SUI Rate % Fee $$/EE/Yr Costs Charge Savings/(Cost) % $1, $15, $15, ($350.01) % $1, $158, $170, ($11,962.59) WC initially set up SUI rates Total Savings / (Cost) ($12,312.60) with Cost = Charge. pull from Erase formulas and HROs SUI type in Costs if worksheet Profit Center. Keep 125 Plan FICA Tax Dollars? Profit Centers Yes Charges/Markups/etc Charge FUTA on ALL Wages? Charge SUI on ALL Wages? Profitability Summary My HRO/PEO Firm Profit Analysis - Calendar Year Total FICA Profit Futa Profit SUI Profit WC Profit Admin Fee Gross Profit $ $1, $1, $4, $19, $23, $4, $20, $24,844.40

3 With My Benefits Cost Comparison Summary Current HRO/PEO Firm Total Annual Employer Cost $54,000 $51,000 Total Annual Employer Cost / (Savings) ($3,000) Total Annual Employee Cost $66,000 $66,000 Total Annual Employee Cost / (Savings) Total Employer Tax Savings (Est) ($5,049) Medical Plan #1 Employee Only 10 $ $ $ $ $ $ Employee + Family 5 $1, $ $ $1, $ $ Total s 15 $10, $5, $4, $9, $5, $4, Medical Plan #2 Employee Only Total s Dental Plan #1 Employee Only Employee + Spouse PEO Consulting s.00 0 Pricing & Costs.00 Total s Dental Plan #2 Employee Only Comprehensive.00 0 Benefits Costs.00 Employee + Children and s.00 0 input page.00 Total s Vision Plan Employee Only Total s Life & AD&D Total s Short Term Disability Total s Long Term Disability Total s

4 Human Resources Investment Illustration When you look at all the parts of Human Capital, it's obvious you've already made a huge investment in the 'people part' of your business. Based on the HR Profile you provided My HRO/PEO Firm, your average* total employment costs already exceed $50,947 per bi-weekly pay period. Total Employment Estimate, Based on Above Factors: $60,000 $50,947 $51,420 w h My HRO/PEO Firm $50,000 $40,000 $30,000 $20,000 $10,000 Total Annual Wages $1,150,000 $1,150,000 Social Security $62,267 $66,154 ($3,887) Medicare $15,718 $16,675 Benefits ($957) (Employer Portion) Federal Unemployment $1,008 $1,008 State(s) Unemployment $26,568 $23,911 $2,657 Workers Compensation $6,050 $5,175 EAP$875 HR Administration $6,000 $6,000 My HRO/PEO Firm Service Fee $20, ($20,000) 401k Match 401k Match $3,000 $3,000 EAP Employer Portion of Ins. Benefits $54,000 $51,000 My $3,000 HRO/PEO Firm Service TOTAL Investment in Employees $1,324,611 $1,336,923 ($12,313) Fee Per Payperiod Average, Based on Calendar Year Snapshot Enter Prospect Co. Nameh My HRO/PEO Firm $12,313 HR Administration Total Annual Wages $44,231 $44,231 Workers Compensation Social Security $2,395 $2,544 ($150) State(s) Unemployment Medicare $605 $641 ($37) Federal Unemployment $39 $39 Federal Unemployment State(s) Unemployment $1,022 $920 $102 Medicare Workers Compensation $233 $199 $34 Social Security HR Administration $231 $231 My HRO/PEO Firm Service Fee $ Total ($769) Annual Wages 401k Match $115 $115 Enter Prospect Co. Side-by-Side Cost Graphic Comparison EAP With My HRO/PEO Name Benefits w(employer Portion) Firm $2,077 $1,962 $115 TOTAL Investment in Employees $50,947 $51,420 ($474) Enter Prospect Co. Name's current average investment per bi-weekly pay period: Average investment per payperiod using My HRO/PEO Firm: Incremental investment to have My HRO/PEO Firm be your HR department: This is the equivalent of hiring a full time person whose total cost per hour is only $5.92! Assumptions / Important tes: 1) Employee Census as provided by your company. Costs will vary as Census varies. 2) Estimates of employment costs are annual calendar year numbers, divided by the number of pay periods. 3) Some description of how the Client's costs throughout the year will actually be incurred $50,947 $51,420 $474

5 Human Resources Investment Comparison (All costs shown in average dollars per bi-weekly pay period.) Enter Prospect Co. NameMy HRO/PEO Firm Estimated Gross Wage Base: 20 Employees $44,231 $44,231 Mandated Taxes & Benefits: Social Security (6.2% on applicable wages) $2,395 $2,544 Medicare (1.45% on applicable wages) $605 $641 FUTA (0.6% on applicable wages) $39 $39 State(s) Unemployment (Employer earned rates on applicable State wage bases $1,022 $920 Workers' Compensation $233 $199 Current HR Administration Costs/Fees replaced by My HRO/PEO Fir $231 My HRO/PEO Firm HR Fee ($19.23 per employee per week) $769 Employee Benefits (Employer portion only) 401(k) Match $115 $115 EAP Medical $2,077 $1,962 Dental Vision Life Short Term Disability Long Term Disability Total Average Investment per pay period: $50,947 $51,420 Total Estimated Investment per pay period: $474 This is the equivalent of hiring a full time person whose total cost per hour is only $5.92! Initial Set-up Fees: $x per employee New Employee Set-up Fee: $x at time of hire for subsequent new hires Delivery Fees: $x per delivery Date of this proposal: 9/4/14 This proposal is valid for 30 days from this date. Other important information or disclosures Other important information or disclosures Side-by-Side Cost Comparison