v3.25.4
Other Balance Sheet Information (Notes)
 12 Months Ended
Dec. 31, 2025
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Other Balance Sheet Disclosures [Text Block]
2.Other Balance Sheet Information
Cash, Cash Equivalents and Marketable Securities
The following table summarizes our cash and investments in cash equivalents and marketable securities held by investment managers and overnight investments:
December 31, 2025December 31, 2024
(in millions)
Cash & Cash EquivalentsMarketable SecuritiesTotalCash & Cash EquivalentsMarketable SecuritiesTotal
Overnight holdings$638 $— $638 $931 $— $931 
Investment holdings22 18 40 117 16 133 
660 18 678 1,048 16 1,064 
Cash in demand accounts22 — 22 27 — 27 
Outstanding checks(40)— (40)(36)— (36)
Total$642 $18 $660 $1,039 $16 $1,055 
Our cash and overnight holdings fluctuate based on the timing of clients’ payroll processing cycles. Our cash, cash equivalents and marketable securities at December 31, 2025 and December 31, 2024 included $468 million and $830 million, respectively, of funds associated with federal and state income tax withholdings, employment taxes, and other payroll deductions, as well as $135 million and $91 million, respectively, in client prepayments. In addition, $440 million of client employee retention tax credits received on their behalf from the Internal Revenue Service during the fourth quarter of 2024 were distributed to clients in early 2025.
Cash, Cash Equivalents, Restricted Cash, Funds Held for Clients, and Deposits – Workers’ Compensation
The following table summarizes our cash, cash equivalents, restricted cash, funds held for clients, and deposits – workers’ compensation as reported in our Consolidated Statements of Cash Flows:
Year Ended December 31,
(in millions)
202520242023
Supplemental schedule of cash and cash equivalents, restricted cash, funds held for clients, and deposits – workers’ compensation
Cash and cash equivalents$1,039 $693 $733 
Restricted cash69 57 50 
Other current assets - funds held for clients(1)
58 87 35 
Deposits – workers’ compensation178 198 196 
Cash, cash equivalents, restricted cash, funds held for clients, and deposits – workers’ compensation beginning of year
$1,344 $1,035 $1,014 
Cash and cash equivalents$642 $1,039 $693 
Restricted cash82 69 57 
Other current assets - funds held for clients(1)
73 58 87 
Deposits – workers’ compensation148 178 198 
Cash, cash equivalents, restricted cash, funds held for clients, and deposits – workers’ compensation end of year
$945 $1,344 $1,035 
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(1)Funds held for clients represent amounts held on behalf of our Traditional HR Solution customers that are restricted for the purpose of satisfying obligations to remit funds to clients’ employees and various tax authorities.
Please read Note 1. “Accounting Policies,” for a discussion of our accounting policies for deposits — workers’ compensation and restricted cash.
Payroll Taxes and Other Payroll Deductions Payable
As a co-employer, we generally assume responsibility for the withholding and remittance of federal and state payroll taxes and other payroll deductions with respect to wages and salaries paid to our WSEEs. As of December 31, 2025 and December 31, 2024, payroll taxes and other payroll deductions payable were $544 million and $901 million, respectively. The balance at December 31, 2024 includes $440 million of funds we received in late December 2024 from the Internal Revenue Service related to employee retention tax credits claimed by our PEO clients under the COVID relief programs, that were distributed to clients in early 2025.