Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The current and deferred federal and state income tax provision from continuing operations, are comprised of the following:

	For the Years Ended December 31,
	(Amounts in Thousands)
	2023		2022		2021
Current
Federal	$	11,839	$	7,075	$	4,603
State		4,139		3,090		2,398
Deferred
Federal		2,306		3,118		6,407
State		526		863		1,864
Provision for income taxes	$	18,810	$	14,146	$	15,272

The tax effects of certain temporary differences between the Company’s book and tax bases of assets and liabilities give rise to significant portions of the deferred income tax assets (liabilities) at December 31, 2023 and 2022. The deferred tax assets (liabilities) consisted of the following:

	For the Years Ended December 31,
	(Amounts in Thousands)
	2023			2022
Deferred tax assets
Long-term
Accounts receivable allowances	$	21,480		$	18,515
Operating lease liabilities		13,562			12,472
Accrued compensation		4,957			3,676
Accrued workers’ compensation		3,046			3,296
Transaction costs		2,390			2,056
Stock-based compensation		1,456			1,473
Net operating loss		87			—
Restructuring costs		26			54
Other		2,908			1,420
Total long-term deferred tax assets		49,912			42,962
Deferred tax liabilities
Long-term
Goodwill and intangible assets		(42,980	)		(34,310	)
Operating lease assets, net		(11,650	)		(10,323	)
Property and equipment		(2,829	)		(3,123	)
Insurance premiums		(982	)		(916	)
Total long-term deferred tax liabilities		(58,441	)		(48,672	)
Total net deferred tax (liabilities) assets	$	(8,529	)	$	(5,710	)

Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers all available evidence in making this assessment.

A reconciliation for continuing operations of the statutory federal tax rate of 21.0% to the effective income tax rate is summarized as follows:

	For the Years Ended December 31,
	2023				2022				2021
Federal income tax at statutory rate		21.0		%		21.0		%		21.0		%
State and local taxes, net of federal benefit		5.6				5.9				6.3
162(m) disallowance for executive compensation		2.2				3.2				3.5
Nondeductible penalties		0.1				—				0.6
Excess tax benefit		(0.5	)			(0.4	)			(2.0	)
Jobs tax credits, net		(4.0	)			(5.1	)			(4.1	)
Nondeductible permanent items		0.1				—				—
Federal/state return to provision		(1.3	)			(1.0	)			—
Other		(0.1	)			(0.1	)			(0.1	)
Effective income tax rate		23.1		%		23.5		%		25.2		%

The effective income tax rate was 23.1%, 23.5% and 25.2% for the years ended December 31, 2023, 2022 and 2021, respectively. The difference between our federal statutory and effective income tax rates was principally due to the inclusion of state taxes and non-deductible compensation, partially offset by an excess tax benefit and the use of federal employment tax credits. The excess tax expense/benefit is a discrete item, related to the vesting of equity shares, which requires the Company to recognize the expense or benefit fully in the period.

The Company is subject to taxation in the jurisdictions in which it operates. The Company continues to remain subject to examination by U.S. federal authorities for the years 2020 through 2022 and for various state authorities for the years 2018 through 2022.