INCOME TAXES

3 Months Ended

Jan. 01, 2021

NOTE 9—INCOME TAXES

The provision for income taxes during each of the three months ended January 1, 2021 and December 27, 2019 follows:


	Three Months Ended
	January 1, 2021		December 27, 2019
(in thousands)
Provision for income taxes	$	227	$	336

In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures may include deferring the due dates of tax payments or other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. The Company has assessed the provisions of the CARES Act and determined that there were no material tax impacts to the condensed consolidated financial statements for the period ended January 1, 2021.

The Company's effective tax rate for the three months ended January 1, 2021 is 12.9% and is comprised of the federal tax rate of 21% plus the state tax rate of 1.58%, which is adjusted for permanent book tax differences. During the three months ended January 1, 2021, the permanent items included meals and entertainment and stock based compensation. There was a discrete item related to stock based compensation recognized in the three months ended January 1, 2021.

- 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.

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