Gary Kramer: Yes, good question. We really do forensics on the 1/1 cycle. So we look at all clients that are from 12/15 to 1/15 that we add or run off and look at the WSEs and kind of compare that year-over-year. 2023 we added more clients and more WSEs. We had a little more runoff and a little more runoff of WSEs. But our net WSEs that we added for the 1/1 selling season, it was almost the — it was slightly at or a little better than where we were for the 1/1/22 selling season. So we feel like we’re starting in a good spot for the ’23 season. And we feel better because we’ve got the benefits offering coming and things like that. The one thing I would say which is still a little bit of an unknown for us in Q1 was — you know this being in Southern Cal, Jeff, the weather we’ve had in California and even the weather we’re still having up in California has definitely slowed our January payrolls for some of our construction clients and January and into February a little bit, but we feel good that it’s going to rebound and it’s really temporary just based upon the weather.
Jeffrey Martin: Yes, it makes sense. And then I was just curious, not so much quantitatively but qualitatively, we’ve been in a low workers’ comp rate environment for years now. How much do you think that hampered your growth? And do you see any signs of that of easing?
Gary Kramer: Yes. I mean if you think of inflation, inflation is rampant everywhere and in workers’ comp, you’re going to see it in the medical side. And that’s really what everybody in the market is talking and thinking about is how is the inflationary effect going to affect the medical and then possibly the indemnity. Just in general, you’ve got all things pointing that workers’ comp premium rates have to go up. And we’ve seen that over the last, I’ll say, 15, 18 months, not as quickly as I would like, that’s why we’re still being thoughtful on our underwriting. We’re very careful with our price to risk selection. But in general, it’s bottomed and it’s coming up. It’s just not going to be — whenever you have a rate action, a rate action is always slower than a loss action. So it’s coming up, but it’s coming up a little slower than we would like.
Jeffrey Martin: Okay. And then just last one, if I could. You mentioned an incremental $1.5 million investment in the BBSI Benefits offering. How much is that on top of the annualized incremental SG&A from, say, 2022?
Anthony Harris: On a percentage basis, it’s approximately 1%.
Jeffrey Martin: 1% of net revenue million?
Anthony Harris: Sorry, ’22 SG&A.
Jeffrey Martin: But I guess I rephrase question. What was the investment in the benefits strategy during 2022. I know we got an incremental $1.5 million this year. Just trying to get a sense of what the cumulative number is.
Anthony Harris: Yes. No, it’s a good question, sorry. It was about $2 million in 2022.
Gary Kramer: A lot of that was weighted towards the back half of the year. And then the other thing you have to keep in mind, it’s in ’23, we are going to have some income that is coming in that’s going to offset those expenses for the health care specifically from the commissions and that we’re going to make on being the seller of the health insurance.
Operator: We will take the next question from the line of Vincent Colicchio with Barrington Research.
