Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

9. 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)
	2021		2020			2019
Current
Federal	$	4,603	$	10,230		$	5,876
State		2,398		3,312			2,442
Deferred
Federal		6,407		(3,690	)		(734	)
State		1,864		(1,043	)		(225	)
Provision for income taxes	$	15,272	$	8,809		$	7,359

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, 2021 and 2020. The deferred tax assets (liabilities) consisted of the following:

	For the Years Ended December 31,
	(Amounts in Thousands)
	2021			2020
Deferred tax assets
Long-term
Accounts receivable allowances	$	14,590		$	14,023
Operating lease liabilities		11,623			12,123
Accrued compensation		3,752			3,580
Accrued workers’ compensation		3,119			3,220
Transaction costs		1,803			1,677
Stock-based compensation		1,293			833
Government stimulus advances		1,138			1,933
Restructuring costs		119			108
Other		793			1,269
Total long-term deferred tax assets		38,230			38,766
Deferred tax liabilities
Long-term
Goodwill and intangible assets		(26,097	)		(18,891	)
Operating lease assets, net		(9,571	)		(10,052	)
Property and equipment		(3,415	)		(3,217	)
Insurance premiums		(876	)		—
Other		—			(82	)
Total long-term deferred tax liabilities		(39,959	)		(32,242	)
Valuation allowance		—			—
Total net deferred tax (liabilities) assets	$	(1,729	)	$	6,524

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,
	2021				2020				2019
Federal income tax at statutory rate		21.0		%		21.0		%		21.0		%
State and local taxes, net of federal benefit		6.3				6.0				6.4
162(m) disallowance for executive compensation		3.5				6.0				7.5
Nondeductible penalties		0.6				—				1.3
Excess tax benefit		(2.0	)			(5.6	)			(6.7	)
Jobs tax credits, net		(4.1	)			(5.1	)			(8.3	)
Nondeductible permanent items		—				0.4				0.7
Federal/state return to provision		—				(1.6	)			0.6
Other		(0.1	)			(0.1	)			(0.3	)
Effective income tax rate		25.2		%		21.0		%		22.2		%

The effective income tax rate was 25.2%, 21.0% and 22.2% for the years ended December 31, 2021, 2020 and 2019, respectively. The difference between our federal statutory and effective income tax rates is principally due to the inclusion of state taxes and non-deductible compensation, offset by an excess tax benefit and the use of federal employment tax credits. The excess tax benefit is a discrete item, primarily related to the vesting of equity shares, which requires the Company to recognize the 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 2018 through 2020 and for various state authorities for the years 2016 through 2020.