INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes consists of the following (in thousands):

	Year Ended December 31,
	2020		2019		2018
Current income taxes:
Federal	$	17,150	$	10,343	$	13,704
State	3,561		2,478		2,255
Total	20,711		12,821		15,959
Deferred income taxes:
Federal	(946)		1,182		1,466
State	(537)		500		(18)
Total	(1,483)		1,682		1,448
Total income tax provision	$	19,228	$	14,503	$	17,407

Schedule of deferred income tax assets and liabilities

The tax effects of the temporary differences that gave rise to significant components of the Company’s deferred tax assets and liabilities were as follows at December 31 (in thousands):

	2020		2019
Deferred tax assets:
Stock-based compensation	$	1,330	$	983
Federal benefit of state uncertain tax positions	563		746
Accrued vacation	618		521
Deferred rent	112		95
Deferred payroll tax	947		—
State net operating loss carryforwards	53		228
Allowance for doubtful accounts	552		311
Right of use lease liability	2,851		2,840
Other	873		465
Gross deferred tax assets	7,899		6,189
Less: Valuation allowance	(4)		(335)
Total deferred tax assets	7,895		5,854
Deferred tax liabilities:
Property and equipment	(1,830)		(2,027)
Capitalized software development costs	(4,423)		(3,544)
Right of use lease asset	(2,739)		(2,746)
Total deferred tax liabilities	(8,992)		(8,317)
Net deferred tax liability	$	(1,097)	$	(2,463)

Schedule of effective tax rates

The following table reconciles the statutory federal income tax rate and the effective income tax rate indicated by the consolidated statements of income:

	Year Ended December 31,
	2020		2019		2018
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State income taxes	3.5	%	5.0	%	2.3	%
Federal and state tax credits	(2.1)	%	(0.8)	%	(2.3)	%
Tax deficit (benefit) from restricted stock vestings	(0.3)	%	(0.1)	%	0.3	%
Uncertain tax positions (release)	(0.6)	%	(5.2)	%	0.8	%
Nondeductible expenses	0.7	%	2.2	%	0.8	%
Other, net	(0.3)	%	0.2	%	0.1	%
Effective federal and state income tax rate	21.9	%	22.3	%	23.0	%

Schedule of unrecognized tax benefits

The following table provides a reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits (included in other long-term liabilities in the consolidated balance sheets) for the years ended December 31, 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Balance at January 1	$	5,048	$	8,651	$	8,020
Additions for tax positions of prior years	247		208		459
Additions for tax positions of current years	368		393		1,248
Expiration of the statute of limitations	(1,202)		(3,182)		(1,024)
Reductions for tax positions of prior years	(103)		(217)		(52)
Settlements	—		(805)		—
Balance at December 31	$	4,358	$	5,048	$	8,651