Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The items comprising income tax expense are as follows:

	Year Ended December 31,
	2024		2023		2022
Provision for current income taxes
Federal	$	103.8	$	94.1	$	81.3
State		37.4		31.9		30.1
Total provision for current income taxes		141.2		126.0		111.4
Provision for deferred income taxes
Federal		3.9		5.4		(2.8	)
State		1.9		0.2		(0.4	)
Total provision for deferred income taxes		5.8		5.6		(3.2	)
Total provision for income taxes	$	147.0	$	131.6	$	108.2

Income Tax Rate Reconciliation

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

	Year Ended December 31,
	2024			2023			2022
Federal statutory tax rate		21	%		21	%		21	%
Increase (decrease) resulting from:
State income taxes, net of Federal income tax benefit		6	%		6	%		6	%
Nondeductible expenses		1	%		3	%		4	%
Research credit, Federal benefit		(1	%)		(3	%)		(2	%)
Stock-based compensation		(4	%)		0	%		(1	%)
Uncertain Tax Position		0	%		1	%		0	%
Effective income tax rate		23	%		28	%		28	%

Schedule of Net Deferred Tax Assets and Liabilities

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

	December 31,
	2024			2023
Deferred income tax assets (liabilities):
Mark-to-market investments - OCI	$	0.2		$	0.3
Stock-based compensation		18.0			15.1
Investment in Paycom Payroll Holdings, LLC		(167.9	)		(159.3	)
Net operating losses		—			0.1
Noncurrent deferred income tax liabilities, net	$	(149.7	)	$	(143.8	)

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, 2024, 2023 and 2022.

	Year Ended December 31,
	2024			2023		2022
Balance at January 1
Tax positions related to current year:	$	3.8		$	—	$	—
Additions		0.8			3.8		—
Reductions		(0.8	)		—		—
Balance at December 31	$	3.8		$	3.8	$	—