Employee Retention Credit

12 Months Ended

Dec. 31, 2025

Government Assistance [Abstract]

Employee Retention Credit

Note 2—Employee Retention Credit

On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act provided the Employee Retention Tax Credit (“ERC”), which allows employers to claim a refundable tax credit against the employer share of Social Security tax equal to 50% of the qualified wages paid to employees from March 13, 2020 through December 31, 2020. The ERC was subsequently expanded in 2021 for employers to claim a refundable tax credit for 70% of the qualified wages paid to employees from January 1, 2021 through September 30, 2021. Refunds received by the Company and refunds obtained in any future periods are subject to IRS audit under the applicable statutes of limitations.

On July 4, 2025, the U.S. Government enacted the One Big Beautiful Bill Act (“OBBBA”), which included provisions impacting the ERC including imposing an extended statute of limitations for the IRS to audit ERC filings for the quarter ended September 30, 2021. The OBBBA did not include any provisions extending the statute of limitations for auditing ERC filings for quarters ending March 31, 2020 through June 30, 2021. Following the passing of the OBBBA, the Company determined that the statute of limitations had expired for filings for quarters ending June 30, 2020 through June 30, 2021 and that the Company obtained reasonable assurance over receipt of, and compliance with, the terms of the ERC for refunds received from the IRS for those periods.

During the year ended December 31, 2025, the Company received $51.8 million in ERC refunds from the IRS, including interest income of $7.0 million. During the year ended December 31, 2025, the Company recognized $34.2 million of ERC refunds as a reduction to Costs of services provided, $5.3 million of interest income on such refunds received within Investment and other income, net, and $2.1 million of professional fees expense associated with the ERC refunds within Selling, general and administrative expenses in the Consolidated Statements of Comprehensive Income. At December 31, 2025, the Company recorded a deferred ERC credit liability of $12.3 million within Other accrued expenses and current liabilities on the Consolidated Balance Sheets related to ERC refunds received for amended returns filed for the quarter ended September 30, 2021. The Company will recognize income on the deferred liability and future ERC refunds received once the Company determines reasonable assurance that compliance with the terms of the ERC has been obtained.