8. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is based on the weighted average number of shares of common stock outstanding for the period. Diluted EPS is computed in a similar manner to basic EPS after assuming the issuance of shares of common stock for all potentially dilutive shares of restricted stock whether or not they are vested.

Under the 2014 Reorganization, all the outstanding common units, Series B Preferred Units and incentive units of Holdings were exchanged for, or converted into, 45,708,573 shares of our common stock and 8,121,101 shares of our restricted stock as of January 1, 2014.

The following is a reconciliation of net income and the shares of common stock used in the computation of basic and diluted net earnings per share:


	Three Months Ended						Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014		June 30, 2013
Numerator:
Net income	$	(593	)	$	360		$	467	$	2,995
Net income attributable to non-controlling interest		—			(3	)		—		(22	)

Net income attributable to Paycom	$	(593	)	$	357		$	467	$	2,973

Denominator:
Weighted average shares outstanding		50,284,362			44,560,053			48,015,577		44,560,053
Adjustment for vested restricted stock		—			1,061,815			—		681,886

Shares for calculating basic EPS		50,284,362			45,621,868			48,015,577		45,241,939

Weighted average shares outstanding		50,284,362			44,560,053			48,015,577		44,560,053
Dilutive effect of unvested restricted stock		—			3,438,171			2,315,425		3,398,286

Shares for calculating diluted EPS		50,284,362			47,998,224			50,331,002		47,958,339

Net income (loss) per share:
Basic	$	(0.01	)	$	0.01		$	0.01	$	0.07
Diluted	$	(0.01	)	$	0.01		$	0.01	$	0.06

We excluded 1,984,938 shares of restricted stock from the diluted earnings per share calculation for the three months ended June 30, 2014 because they were anti-dilutive.

There is no difference in net income and pro forma net income for either the three or six months ended June 30, 2014. The following is a reconciliation of pro forma net income for the three and six months ended June 30, 2013 and the shares of stock used in the computation of pro forma basic and diluted net income per share:


	Three Months Ended		Six Months Ended
	June 30, 2013		June 30, 2013
Pro forma numerator:
Net income attributable to Paycom	$	357	$	2,973
Pro forma additional income tax expense (Note 12)		79		656

Pro forma net income attributable to Paycom (Note 12)	$	278	$	2,317

Pro forma denominator:
Pro forma weighted average shares outstanding		44,560,053		44,560,053
Adjustment for vested restricted stock		1,061,815		681,886

Pro forma shares for calculating basic EPS		45,621,868		45,241,939

Pro forma weighted average shares outstanding		44,560,053		44,560,053
Effect of dilutive restricted stock		3,438,171		3,398,286

Pro forma shares for calculating diluted EPS		47,998,224		47,958,339

Pro forma net income per share:
Basic	$	0.01	$	0.05
Diluted	$	0.01	$	0.05

For the three and six months ended June 30, 2014, there was no difference between net income and pro forma net income. See “Note 12 Income Taxes” for additional information regarding pro forma income tax expense.