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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 14. INCOME TAXES The items comprising income tax expense are as follows:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Provision for current income taxes |  |  |  |  |  |  |  |  |
Federal |  | $ | 81,348 |  |  | $ | 17,557 |  |  | $ | 14,680 |
State |  |  | 30,051 |  |  |  | 9,539 |  |  |  | 6,422 |
Total provision for current income taxes |  |  | 111,399 |  |  |  | 27,096 |  |  |  | 21,102 |
Provision for deferred income taxes |  |  |  |  |  |  |  |  |
Federal |  |  | (2,823 | ) |  |  | 26,579 |  |  |  | 15,204 |
State |  |  | (387 | ) |  |  | 6,327 |  |  |  | 6,177 |
Total provision for deferred income taxes |  |  | (3,210 | ) |  |  | 32,906 |  |  |  | 21,381 |
Total provision for income taxes |  | $ | 108,189 |  |  | $ | 60,002 |  |  | $ | 42,483 |
The following schedule reconciles the statutory Federal tax rate to the effective income tax rate:
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal statutory tax rate |  |  | 21 | % |  |  | 21 | % |  |  | 21 | %
Increase (decrease) resulting from: |  |  |  |  |  |  |  |  |
State income taxes, net of Federal income tax benefit |  |  | 6 | % |  |  | 8 | % |  |  | 8 | %
Nondeductible expenses |  |  | 4 | % |  |  | 6 | % |  |  | 6 | %
Research credit, Federal benefit |  |  | (2 | %) |  |  | (3 | %) |  |  | (3 | %)
Stock-based compensation |  |  | (1 | %) |  |  | (7 | %) |  |  | (9 | %)
Remeasurement of state deferred tax liabilities |  |  | (0 | %) |  |  | (2 | %) |  |  | 0 | %
Effective income tax rate |  |  | 28 | % |  |  | 23 | % |  |  | 23 | %
Our effective income tax rate was 28% and 23% for the years ended December 31, 2022 and 2021, respectively. The higher effective income tax rate for the year ended December 31, 2022 primarily resulted from a decrease of excess tax benefits from shares that vested in 2022. 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:
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred income tax assets (liabilities): |  |  |  |  |  |
Mark-to-market investments - OCI |  | $ | 1,260 |  |  | $ | — |
Stock-based compensation |  |  | 4,425 |  |  |  | 1,541 |
Investment in Paycom Payroll Holdings, LLC |  |  | (146,907 | ) |  |  | (147,659 | )
Net operating losses |  |  | 189 |  |  |  | 614 |
Noncurrent deferred income tax liabilities, net |  | $ | (141,033 | ) |  | $ | (145,504 | )
At December 31, 2022, we had net operating loss carryforwards for state income tax purposes of approximately $0.2 million, which are available to offset future state taxable income that begin expiring in 2032. At December 31, 2022 and 2021, 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, state and local income tax examinations by tax authorities for years prior to 2019. On August 16, 2022, the Inflation Reduction Act of 2022 was signed into law, which, among other things, implements a 15% minimum tax on book income of certain large corporations, a 1% excise tax on net stock repurchases and several tax incentives to promote clean energy. Based on our current analysis of the provisions, we do not believe this legislation will have a material impact on our consolidated financial statements

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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