Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Tax Expense

The items comprising income tax expense are as follows (dollars in thousands):

	Year Ended December 31,
	2016			2015			2014
Provision for current income taxes
Federal	$	12,207		$	11,308		$	1,330
State		3,044			2,292			388
Total provision for current income taxes		15,251			13,600			1,718
Provision (benefit) for deferred income taxes, net
Federal		(1,476	)		(1,109	)		2,114
State		(372	)		89			161
Total provision (benefit) for deferred income taxes, net		(1,848	)		(1,020	)		2,275
Total provision for income taxes	$	13,403		$	12,580		$	3,993

Reconciles Statutory Federal Tax Rate to Effective Income Tax Rate

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

	Year Ended December 31,
	2016			2015			2014
Federal statutory tax rate		35	%		35	%		34	%
Increase(decrease) resulting from:
State income taxes, net of Federal income tax benefit		4	%		4	%		4	%
Nondeductible expenses		1	%		3	%		4	%
Research credit, Federal benefit		(2	%)		(1	%)		0	%
Section 199 - Qualified production activities		(2	%)		(3	%)		0	%
Stock-based compensation		(12	%)		0	%		0	%
Other		(1	%)		0	%		(1	%)
Effective income tax rate		23	%		38	%		41	%

Net Deferred Tax Assets and Liabilities

The significant components of our deferred tax assets and liabilities were as follows (dollars in thousands):

	Year Ended December 31,
	2016			2015
Deferred income tax assets (liabilities):
Stock-based compensation	$	2,658		$	1,035
Investment in Paycom Payroll Holdings, LLC		(1,487	)		(1,676	)
Net operating losses		36			—
Noncurrent deferred income tax assets (liabilities), net	$	1,207		$	(641	)