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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 6. Income Taxes The provision for income taxes consists of the following (in thousands):
| YEARS ENDED DECEMBER 31,
| 2022 |  | 2021 |  | 2020
Current tax expense: |  |  |  |  |
Federal | $ | 17,535 |  |  | $ | 15,617 |  |  | $ | 17,278 |
State | 6,400 |  |  | 5,765 |  |  | 4,119 |
Deferred tax expense | 3,076 |  |  | 2,708 |  |  | (2,224) |
Total Income tax expense | $ | 27,011 |  |  | $ | 24,090 |  |  | $ | 19,173 |
The provision for income taxes shown above varied from the statutory federal income tax rate for those periods as follows:
| YEARS ENDED DECEMBER 31,
| 2022 |  | 2021 |  | 2020
Federal income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State income taxes, net of Federal tax effect | 5.4 |  |  | 5.0 |  |  | 5.3 |
Non-deductible compensation and meals and entertainment | 2.5 |  |  | 2.2 |  |  | 1.4 |
Tax credits | (1.2) |  |  | (2.2) |  |  | (1.5) |
Tax benefit from restricted stock vesting | (1.0) |  |  | (2.6) |  |  | (1.5) |
Other | (0.3) |  |  | 0.9 |  |  | 0.8 |
Effective tax rate | 26.4 | % |  | 24.3 | % |  | 25.5 | %
The 2022 effective tax rate was unfavorably impacted by a lower Work Opportunity Tax Credit (“WOTC”) and a lower tax benefit from the vesting of restricted stock in 2022, as compared with 2021. The 2021 effective rate was favorably impacted by a higher WOTC and a greater tax benefit from the vesting of restricted stock in 2021, as compared with 2020. These were offset by greater non-deductible compensation to certain executive officers pursuant to IRS Code Section 162(m). Deferred tax assets and liabilities are composed of the following (in thousands):
| DECEMBER 31,
| 2022 |  | 2021
Deferred tax assets: |  |  |
Accounts receivable reserves | $ | 901 |  |  | $ | 604 |
Accrued liabilities | 2,855 |  |  | 2,367 |
Deferred compensation obligation | 6,521 |  |  | 5,702 |
Stock-based compensation | 902 |  |  | 715 |
Operating lease liabilities | 5,411 |  |  | 4,704 |
Pension and post-retirement benefit plans | — |  |  | 2,929 |
Deferred payroll taxes | — |  |  | 4,965 |
Other | 8 |  |  | 11 |
Deferred tax assets | 16,598 |  |  | 21,997 |
Deferred tax liabilities: |  |  |
Prepaid expenses | (359) |  |  | (604) |
Fixed assets | (4,694) |  |  | (4,185) |
Goodwill | (2,408) |  |  | (2,413) |
ROU assets for operating leases | (4,397) |  |  | (3,965) |
Partnership basis difference | 46 |  |  | (2,966) |
Other | — |  |  | (207) |
Deferred tax liabilities | (11,812) |  |  | (14,340) |
Valuation allowance | — |  |  | — |
Total Deferred tax assets, net | $ | 4,786 |  |  | $ | 7,657 |
In evaluating the realizability of Kforce’s deferred tax assets, management assesses whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. Management considers, among other things, the ability to generate future taxable income (including reversals of deferred tax liabilities) during the periods in which the related temporary differences will become deductible. Kforce is periodically subject to IRS audits, as well as state and other local income tax audits for various tax years. Although Kforce has not experienced any material liabilities in the past due to income tax audits, Kforce can make no assurances concerning any future income tax audits. Kforce and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states. With a few exceptions, Kforce is no longer subject to federal, state, local, or non-U.S. income tax examinations by tax authorities for years before 2019.

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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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