Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The items comprising income tax expense are as follows:

	Year Ended December 31,
	2023		2022			2021
Provision for current income taxes
Federal	$	94,068	$	81,348		$	17,557
State		31,952		30,051			9,539
Total provision for current income taxes		126,020		111,399			27,096
Provision for deferred income taxes
Federal		5,428		(2,823	)		26,579
State		163		(387	)		6,327
Total provision for deferred income taxes		5,591		(3,210	)		32,906
Total provision for income taxes	$	131,611	$	108,189		$	60,002

Income Tax Rate Reconciliation

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

	Year Ended December 31,
	2023			2022			2021
Federal statutory tax rate		21	%		21	%		21	%
Increase (decrease) resulting from:
State income taxes, net of Federal income tax benefit		6	%		6	%		8	%
Nondeductible expenses		3	%		4	%		6	%
Research credit, Federal benefit		(3	%)		(2	%)		(3	%)
Stock-based compensation		0	%		(1	%)		(7	%)
Remeasurement of state deferred tax liabilities		0	%		0	%		(2	%)
Uncertain Tax Position		1	%		0	%		0	%
Effective income tax rate		28	%		28	%		23	%

Schedule of Net Deferred Tax Assets and Liabilities

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

	December 31,
	2023			2022
Deferred income tax assets (liabilities):
Mark-to-market investments - OCI	$	301		$	1,260
Stock-based compensation		15,063			4,425
Investment in Paycom Payroll Holdings, LLC		(159,184	)		(146,907	)
Net operating losses		70			189
Noncurrent deferred income tax liabilities, net	$	(143,750	)	$	(141,033	)

Summary of Reconciliation of the Total unrecognized Tax Benefits

The following table presents a reconciliation of the total unrecognized tax benefits as of the years ended December 31, 2023, 2022 and 2021.

	Year Ended December 31,
	2023		2022		2021
Balance at January 1
Tax positions related to current year:	$	—	$	—	$	—
Additions		3,834		—		—
Reductions		—		—		—
Balance at December 31	$	3,834	$	—	$	—