8. Income Taxes

The current and deferred federal and state income tax provision for continuing operations, are comprised of the following:


	December 31,
		2016			2015		2014
	(Amounts in Thousands)
Current
Federal	$	4,400		$	2,743	$	2,231
State		908			528		976
Deferred
Federal		(1,147	)		546		1,915
State		(167	)		115		306
Provision for income taxes	$	3,994		$	3,932	$	5,428

The tax effects of certain temporary differences between the Company's book and tax bases of assets and liabilities give rise to significant portions of the deferred income tax assets at December 31, 2016 and 2015. The deferred tax assets consisted of the following:


	December 31,
	2016			2015⁽¹⁾
	(Amounts in Thousands)
Deferred tax assets
Long-term
Accounts receivable allowances	$	2,960		$	1,930
Accrued compensation		2,733			1,165
Accrued workers' compensation		4,854			5,092
Transaction costs		1,137			917
Reserves		169			300
Restructuring costs		718			—
Stock-based compensation		954			1,190
Other		524			926
Total long-term deferred tax assets		14,049			11,520
Deferred tax liabilities
Long-term
Goodwill and intangible assets		(9,863	)		(8,346	)
Property and equipment		(552	)		(697	)
Prepaid insurance		(478	)		(473	)
Other		(3	)		(179	)
Total long-term deferred tax liabilities		(10,896	)		(9,695	)
Total net deferred tax assets	$	3,153		$	1,825

(1)	Prior year was adjusted to conform to current year presentation.

Management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax-planning strategies in making this assessment. Based on this assessment, management believes it is more likely than not that the Company will realize its deferred income tax assets as of December 31, 2016.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires an entity to classify deferred tax liabilities and assets as noncurrent within a classified balance sheet. Previous guidance required deferred tax liabilities and assets be separated into current and noncurrent amounts on the balance sheet. The Company early adopted ASU 2015-17 in the fourth quarter of 2016 on a retrospective basis. The early adoption of this standard did not have a material impact on the Company's financial position, consolidated results of operations or financial statement disclosures.

A reconciliation for continuing operation of the statutory federal tax rate of 35.0%, 34.5% and 34.5% to the effective income tax rate, for the years ended December 31, 2016, 2015, and 2014, is summarized as follows:


	December 31,
	2016		2015		2014
Federal income tax at statutory rate	35.0	%	34.5	%	34.5	%
State and local taxes, net of federal benefit	5.2		5.2		5.9
Jobs tax credits, net	(15.8	)	(11.1	)	(9.9	)
Nondeductible permanent items	0.9		0.5		0.5
Other	(0.2	)	(3.4	)	0.2
Effective income tax rate	25.1	%	25.7	%	31.2	%

The Company is subject to taxation in the jurisdictions in which it operates. The Company continues to remain subject to examination by U.S. federal authorities for the years 2013 through 2016 and for various state authorities for the years 2012 through 2016.

At December 31, 2016 and 2015, the Company did not have any unrecognized tax benefits under ASC Topic 740. During 2015, the Company believed that it no longer had any uncertain tax positions that required a reserve and therefore recognized the previous $0.1 million unrecognized tax benefit during 2015. During 2016, the Company did not record a reserve for uncertain tax positions.

A summary of the activities associated with the Company's reserve for unrecognized tax benefits is as follows:


		Unrecognized
		Tax Benefits
		(Amounts in
		Thousands)
Balance at December 31, 2014	$	115
Decreases related to current year tax positions		(115	)
Balance at December 31, 2015	$	—
Decreases related to current year tax positions		—
Balance at December 31, 2016	$	—

The Company recognizes interest and penalties accrued related to uncertain tax positions in interest expense and penalties within operating expenses on the Consolidated Statements of Income. Accrued interest and penalties are included on the Consolidated Balance Sheets within accrued interest and penalties for uncertain tax positions. The Company did not have any uncertain tax positions as of December 31, 2016 or December 31, 2015, and as a result, it has not recorded a liability for interest and penalties for either year respectively.