Income taxes

6 Months Ended

Jun. 30, 2022

Income taxes

Income taxes

8. Income taxes

On March 18, 2020, the Families First Coronavirus Response Act ("FFCR Act"), and on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") were each enacted in response to the COVID-19 pandemic. The FFCR Act and the CARES Act contain numerous tax provisions, such as deferring payroll payments, establishing a credit for the retention of certain employees, relaxing limitations on the deductibility of interest, and updating the definition of qualified improvement property. This legislation currently has no material impact to the Company’s financial statements.

An income tax expense of $1,575,000 was recorded for the three months ended June 30, 2022 compared to $1,325,000 for the three months ended June 30, 2021. The effective tax rate was approximately 29.2% for the three months ended June 30, 2022 compared to 28.9% for the three months ended June 30, 2021. An income tax expense of $2,055,000 was recorded for the six months ended June 30, 2022 compared to $1,655,000 for the three months ended June 30, 2021. The effective tax rate was approximately 29.0% for the three months ended June 30, 2022 compared to 29.2% for the three months ended June 30, 2021. Income tax provisions for interim (quarterly) periods are based on estimated annual income tax rates and are adjusted for the effects of significant, infrequent or unusual items (i.e. discrete items) occurring during the interim period.