Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income from Continuing Operations Before Income Taxes

For financial reporting purposes, income from continuing operations before income taxes includes the following components (in thousands):

	2020		2019		2018
United States	$	103,306	$	92,710	$	79,669
Foreign (Canada)	182		179		171
Total	$	103,488	$	92,889	$	79,840

Income Tax Expense (Benefit) Included in Consolidated Statements of Comprehensive Income

Income tax expense (benefit) included in the accompanying Consolidated Statements of Comprehensive Income for the years ended December 31, 2020, 2019 and 2018 was as follows (in thousands): 

	2020		2019		2018
Continuing operations :
Current:
Federal	$	21,926	$	12,776	$	12,626
Foreign	78		48		45
State and local	5,584		4,110		2,808
Total	27,588		16,934		15,479
Deferred:
Federal	(1,968)		3,685		2,047
State and local	(479)		1,221		741
Total	(2,447)		4,906		2,788
Total income tax expense from continuing operations	25,141		21,840		18,267
Discontinued operations :
Operations of discontinued operations:
Current	(11)		(107)		2
Deferred	—		(1)		(1)
Total income tax expense from discontinued    operations	(11)		(108)		1
Total income tax expense	$	25,130	$	21,732	$	18,268

Provision for Income Taxes Attributable to Income from Continuing Operations

The provision for income taxes attributable to income from continuing operations differed from the amount obtained by applying the federal statutory income tax rate to income from continuing operations before income taxes, as follows (in thousands, except percentages):

	2020			2019			2018
Tax at U.S. federal statutory rates	$	21,733		$	19,507		$	16,766
State taxes (net of federal benefit)	5,354			4,774			3,745
Business meals and entertainment — non-deductible	458			987			915
Change in valuation allowance	176			932			264
Reserves for uncertain tax positions	(1,290)			(263)			(1,124)
Share-based compensation	(2,394)			(4,773)			(3,260)
Non-deductible expenses	787			713			785
Other, net	317			(37)			176
Provision for income taxes from continuing operations	$	25,141		$	21,840		$	18,267
Effective income tax rate	24.3		%	23.5		%	22.9		%

Tax Effects of Temporary Differences That Rises to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2020 and 2019, were as follows (in thousands):

	2020		2019
Deferred tax assets:
Net operating loss carryforwards	$	1,249	$	1,594
Allowance for doubtful accounts	3,288		3,156
Employee benefits and compensation	30,151		26,442
Lease costs	6,291		4,889
State tax credit carryforwards	1,291		1,322
Deferral of employer FICA taxes	3,983		—
Other deferred tax assets	424		30
Total gross deferred tax assets	46,677		37,433
Less: valuation allowance	(2,663)		(2,799)
Total deferred tax assets, net	44,014		34,634
Deferred tax liabilities:
Client list intangible assets	524		846
Goodwill and other intangibles	49,680		42,496
Property and equipment	2,071		2,291
Other deferred tax liabilities	491		721
Total gross deferred tax liabilities	52,766		46,354
Net deferred tax liability	$	(8,752)	$	(11,720)

Summary of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2020		2019		2018
Balance at January 1	$	2,536	$	2,819	$	3,882
Additions for tax positions of the current year	150		145		119
Settlements of prior year positions	—		(282)		(16)
Lapse of statutes of limitation	(1,150)		(146)		(1,166)
Balance at December 31	$	1,536	$	2,536	$	2,819