XML 40 R22.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | Note 8 - Income Taxes The provision for income taxes is as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |  |  | 2022 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 15,070 |  |  | $ | 11,896 |  |  | $ | 14,683 |
State |  |  | 3,613 |  |  |  | 1,854 |  |  |  | 5,529 |
Total current provision for income taxes |  |  | 18,683 |  |  |  | 13,750 |  |  |  | 20,212 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (535 | ) |  |  | 2,784 |  |  |  | (1,096 | )
State |  |  | (319 | ) |  |  | 1,842 |  |  |  | (1,081 | )
Total deferred provision for income taxes |  |  | (854 | ) |  |  | 4,626 |  |  |  | (2,177 | )
Total provision for income taxes |  | $ | 17,829 |  |  | $ | 18,376 |  |  | $ | 18,035 |
Deferred income tax assets and liabilities consist of the following components (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Deferred income tax assets: |  |  |  |  |  |
Deferred compensation |  | $ | 7,392 |  |  | $ | 6,149 |
Tax effect of unrealized losses, net |  |  | 7,374 |  |  |  | 7,969 |
Operating lease liability |  |  | 5,850 |  |  |  | 5,813 |
Workers' compensation claims liabilities |  |  | 5,423 |  |  |  | 6,709 |
Other |  |  | 1,164 |  |  |  | 579 |
Equity based compensation |  |  | 857 |  |  |  | 907 |
Total deferred income tax assets |  |  | 28,060 |  |  |  | 28,126 |
Less: valuation allowance |  |  | 340 |  |  |  | 65 |
Net deferred income tax assets |  |  | 27,720 |  |  |  | 28,061 |
Deferred income tax liabilities: |  |  |  |  |  |
Tax depreciation in excess of book depreciation |  |  | (10,230 | ) |  |  | (9,180 | )
Amortization of software and intangibles |  |  | (7,467 | ) |  |  | (8,441 | )
Operating lease right-of-use |  |  | (5,545 | ) |  |  | (5,452 | )
Other |  |  | (1 | ) |  |  | (770 | )
Total deferred income tax liabilities |  |  | (23,243 | ) |  |  | (23,843 | )
Net deferred income taxes |  | $ | 4,477 |  |  | $ | 4,218 |
The effective tax rate differed from the U.S. statutory federal tax rate due to the following:
|  | Year Ended December 31, |  |
|  | 2024 |  |  |  | 2023 |  |  |  | 2022 |  |
Statutory federal tax rate |  |  | 21.0 |  | % |  |  | 21.0 |  | % |  |  | 21.0 |  | %
State taxes, net of federal benefit |  |  | 3.6 |  |  |  |  | 4.3 |  |  |  |  | 5.4 |  |
Nondeductible expenses and other, net |  |  | 1.0 |  |  |  |  | 1.7 |  |  |  |  | 1.5 |  |
Adjustment for final positions on filed returns |  |  | 0.5 |  |  |  |  | (0.5 | ) |  |  |  | 0.2 |  |
Other, net |  |  | (0.1 | ) |  |  |  | 0.2 |  |  |  |  | — |  |
Federal and state tax credits |  |  | (0.8 | ) |  |  |  | (0.1 | ) |  |  |  | (0.5 | ) |
Effective tax rate |  |  | 25.2 |  | % |  |  | 26.6 |  | % |  |  | 27.6 |  | %
Under ASC 740, “Income Taxes,” management evaluates the realizability of the deferred tax assets on a quarterly basis under a “more-likely-than-not” standard. As part of this evaluation, management reviews all evidence both positive and negative to determine if a valuation allowance is needed. One component of this analysis is to determine whether the Company was in a cumulative loss position for the most recent 12 quarters. The Company was in a cumulative income position for the 12 quarters ended at both December 31, 2024 and December 31, 2023. The Company’s realization of a portion of net deferred tax assets is based in part on our estimates of the timing of reversals of certain temporary differences and on the generation of taxable income before such reversals. The Company is subject to income taxes in U.S. federal and multiple state and local tax jurisdictions. The Internal Revenue Service (the "IRS") is examining the Company’s federal tax returns for the years ended December 31, 2017 through 2021. BBSI received notices that the IRS intends to disallow certain wage-based tax credits claimed for the years 2017 through 2021, which could result in estimated total additional taxes of $8.0 million and penalties of $1.9 million plus related interest. The Company disagrees with the IRS determination to disallow certain wage-based credits taken by the Company and has filed U.S. Tax Court petitions challenging these notices. We believe that the Company has the technical merits to defend its position. Based on management’s more-likely-than-not assessment that the Company’s position is sustainable, no reserve for the aforementioned IRS notices of disallowance of wage-based tax credits or underpayment penalties has been recorded in the financial statements. In the major jurisdictions where it operates, the Company is generally no longer subject to income tax examinations by tax authorities for tax years before 2017. As of December 31, 2024, total gross unrecognized tax benefits, excluding interest and penalties, of $0.5 million would affect the Company's effective tax rate if recognized in future periods. The Company does not anticipate any material changes to the reserve in the next 12 months. The Company had unrecognized tax benefit of $0.8 million and $0.6 million as of December 31, 2023 and December 31, 2022, respectively. A portion of the consolidated income the Company generates is not subject to state income tax. Depending on the percentage of this income as compared to total consolidated income, the Company's state effective tax rate could fluctuate from expectations. At December 31, 2024, the Company had no state operating loss carryforwards. At December 31, 2024, the Company did no t have a federal general business tax credit carryforward or an alternative minimum tax credit carryforward.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration