Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The items comprising income tax expense are as follows:

	Year Ended December 31,
	2022			2021		2020
Provision for current income taxes
Federal	$	81,348		$	17,557	$	14,680
State		30,051			9,539		6,422
Total provision for current income taxes		111,399			27,096		21,102
Provision for deferred income taxes
Federal		(2,823	)		26,579		15,204
State		(387	)		6,327		6,177
Total provision for deferred income taxes		(3,210	)		32,906		21,381
Total provision for income taxes	$	108,189		$	60,002	$	42,483

Income Tax Rate Reconciliation

The following schedule reconciles the statutory Federal tax rate to the effective income tax rate:

	Year Ended December 31,
	2022			2021			2020
Federal statutory tax rate		21	%		21	%		21	%
Increase (decrease) resulting from:
State income taxes, net of Federal income tax benefit		6	%		8	%		8	%
Nondeductible expenses		4	%		6	%		6	%
Research credit, Federal benefit		(2	%)		(3	%)		(3	%)
Stock-based compensation		(1	%)		(7	%)		(9	%)
Remeasurement of state deferred tax liabilities		(0	%)		(2	%)		0	%
Effective income tax rate		28	%		23	%		23	%

Schedule of Net Deferred Tax Assets and Liabilities

The significant components of our deferred tax assets and liabilities were as follows:

	December 31,
	2022			2021
Deferred income tax assets (liabilities):
Mark-to-market investments - OCI	$	1,260		$	—
Stock-based compensation		4,425			1,541
Investment in Paycom Payroll Holdings, LLC		(146,907	)		(147,659	)
Net operating losses		189			614
Noncurrent deferred income tax liabilities, net	$	(141,033	)	$	(145,504	)