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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes |
12. | INCOME TAXES
The items comprising income tax expense are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Provision for current income taxes |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 11,308 |  |  | $ | 1,330 |  |  | $ | — |
State |  |  | 2,292 |  |  |  | 388 |  |  |  | 275 |
Total provision for current income taxes |  |  | 13,600 |  |  |  | 1,718 |  |  |  | 275 |
Provision for deferred income taxes, net |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (1,109 | ) |  |  | 2,114 |  |  |  | 347 |
State |  |  | 89 |  |  |  | 161 |  |  |  | 170 |
Total provision for deferred income taxes, net |  |  | (1,020 | ) |  |  | 2,275 |  |  |  | 517 |
Total provision for income taxes |  | $ | 12,580 |  |  | $ | 3,993 |  |  | $ | 792 |
The following schedule reconciles the statutory Federal tax rate to the effective income tax rate:
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Federal statutory tax rate |  |  | 35 | % |  |  | 34 | % |  |  | 34 | %
Increase(decrease) resulting from: |  |  |  |  |  |  |  |  |  |  |  |
Earnings excluded from Federal tax |  |  | 0 | % |  | 0 | % |  |  | (14 | %)
State income taxes, net of Federal income tax benefit |  |  | 4 | % |  |  | 4 | % |  |  | 29 | %
Nondeductible expenses |  |  | 3 | % |  |  | 4 | % |  |  | 4 | %
Research credit, Federal benefit |  |  | (1 | %) |  |  | 0 | % |  |  | 0 | %
Section 199 - Qualified production activities |  |  | (3 | %) |  |  | 0 | % |  |  | 0 | %
Other |  |  | 0 | % |  |  | (1 | %) |  |  | 3 | %
Effective income tax rate |  |  | 38 | % |  |  | 41 | % |  |  | 56 | %
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities were as follows (dollars in thousands):
|  | Year Ended December 31, |
|  | 2015 |  |  | 2014 |
Deferred income tax assets (liabilities): |  |  |  |  |  |  |  |
Net operating losses |  | $ | — |  |  | $ | 1,381 |
Federal tax credits |  |  | — |  |  |  | 64 |
Stock-based compensation |  |  | 1,035 |  |  |  | — |
Investment in Paycom Payroll Holdings, LLC |  |  | (1,676 | ) |  |  | (3,107 | )
Noncurrent deferred income tax liabilities, net |  | $ | (641 | ) |  | $ | (1,662 | )
In November 2015, the FASB issued ASU 2015-17 which we elected to early adopt on a retrospective basis. Previous to the issuance of ASU 2015-17, GAAP required an entity to separate deferred income tax assets and liabilities into current and noncurrent amounts. To simplify the presentation of deferred income taxes, this guidance requires that deferred tax assets and liabilities be classified as noncurrent. At December 31, 2015, we had no net operating loss carryforwards. At December 31, 2015 and 2014, we had no material unrecognized tax benefits related to uncertain tax positions. We file income tax returns with the United States federal government and various state jurisdictions. With few exceptions, we are no longer subject to U.S federal tax examinations by tax authorities for years prior to 2012 or state and local examinations by tax authorities for years prior to 2011. Pro Forma Income Tax Expense In connection with the 2014 Reorganization, we became subject to taxation as a Subchapter C Corporation, effective January 1, 2014. As we were a Subchapter C Corporation during both 2015 and 2014, there is no pro forma income tax expense associated with the years ended December 31, 2015 or 2014. The pro forma net income applied in computing the pro forma EPS for the year ended December 31, 2013 was based on our historical net income as adjusted to reflect (i) our conversion to a Subchapter C Corporation as if it had occurred as of January 1, 2011 and (ii) the pro forma tax associated with CP IV Blocker. The pro forma net income includes an adjustment to income tax expense, the amount of which was determined at an effective income tax rate of 47% for the year ended December 31, 2013. This resulted in an incremental pro forma income tax benefit of $(0.1) million for the year ended December 31, 2013.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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