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Income Taxes	6 Months Ended
Jun. 30, 2021
Income Taxes
Income Taxes	NOTE 4. Income Taxes The Company follows FASB ASC Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes. On July 1, 2018, New Jersey’s Assembly Bill 4202 was signed into law. The bill, effective January 1, 2018, imposed a temporary surtax on corporations earning New Jersey allocated taxable income in excess of $1 million at a rate of 2.5 percent for tax years beginning on or after January 1, 2018, through December 31, 2019, and at 1.5 percent for tax years beginning on or after January 1, 2020, through December 31, 2021. In addition, New Jersey adopted mandatory unitary combined reporting for its Corporation Business Tax, which became effective for periods on or after January 1, 2019. On September 29, 2020, New Jersey’s Assembly Bill 4721 was signed into law. The bill, retroactively effective January 1, 2020, extends the 2.5% corporate income surtax until December 31, 2023. If the federal corporate tax rate is increased to a rate of at least 35% of taxable income, the surtax will be suspended. For the quarter ended June 30, 2021, the Company reported income tax expense of $2.5 million for an effective tax rate of 22.7 percent, compared to an income tax expense of $1.5 million and an effective tax rate of 22.3 percent for the prior year’s quarter. For the six months ended June 30, 2021, the Company reported income tax expense of $5.4 million for an effective tax rate of 24.2 percent, compared to an income tax expense of $3.1 million and an effective tax rate of 22.6 percent for the six months ended June 30, 2021. The Company did not recognize or accrue any interest or penalties related to income taxes during the three or the six months ended June 30, 2021 or 2020. The Company did not have an accrual for uncertain tax positions as of June 30, 2021 or December 31,2020, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2016 and thereafter are subject to future examination by tax authorities.

Income Taxes

6 Months Ended

Jun. 30, 2021

NOTE 4. Income Taxes

The Company follows FASB ASC Topic 740, “Income Taxes,” which prescribes a threshold for the financial statement recognition of income taxes and provides criteria for the measurement of tax positions taken or expected to be taken in a tax return. ASC 740 also includes guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition of income taxes.

On July 1, 2018, New Jersey’s Assembly Bill 4202 was signed into law. The bill, effective January 1, 2018, imposed a temporary surtax on corporations earning New Jersey allocated taxable income in excess of $1 million at a rate of 2.5 percent for tax years beginning on or after January 1, 2018, through December 31, 2019, and at 1.5 percent for tax years beginning on or after January 1, 2020, through December 31, 2021. In addition, New Jersey adopted mandatory unitary combined reporting for its Corporation Business Tax, which became effective for periods on or after January 1, 2019.

On September 29, 2020, New Jersey’s Assembly Bill 4721 was signed into law. The bill, retroactively effective January 1, 2020, extends the 2.5% corporate income surtax until December 31, 2023. If the federal corporate tax rate is increased to a rate of at least 35% of taxable income, the surtax will be suspended.

For the quarter ended June 30, 2021, the Company reported income tax expense of $2.5 million for an effective tax rate of 22.7 percent, compared to an income tax expense of $1.5 million and an effective tax rate of 22.3 percent for the prior year’s quarter. For the six months ended June 30, 2021, the Company reported income tax expense of $5.4 million for an effective tax rate of 24.2 percent, compared to an income tax expense of $3.1 million and an effective tax rate of 22.6 percent for the six months ended June 30, 2021. The Company did not recognize or accrue any interest or penalties related to income taxes during the three or the six months ended June 30, 2021 or 2020. The Company did not have an accrual for uncertain tax positions as of June 30, 2021 or December 31,2020, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law. Tax returns for all years 2016 and thereafter are subject to future examination by tax authorities.

- 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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