Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

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):

	2021		2020		2019
United States	$	92,847	$	103,306	$	92,710
Foreign (Canada)	193		182		179
Total	$	93,040	$	103,488	$	92,889

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, 2021, 2020 and 2019 was as follows (in thousands): 

	2021		2020		2019
Continuing operations:
Current:
Federal	$	12,369	$	21,926	$	12,776
Foreign	52		78		48
State and local	3,397		5,584		4,110
Total	15,818		27,588		16,934
Deferred:
Federal	5,029		(1,968)		3,685
State and local	1,282		(479)		1,221
Total	6,311		(2,447)		4,906
Total income tax expense from continuing operations	22,129		25,141		21,840
Discontinued operations:
Operations of discontinued operations:
Current	(5)		(11)		(107)
Deferred	—		—		(1)
Total income tax expense from discontinued    operations	(5)		(11)		(108)
Total income tax expense	$	22,124	$	25,130	$	21,732

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):

	2021			2020			2019
Tax at U.S. federal statutory rates	$	19,538		$	21,733		$	19,507
State taxes (net of federal benefit)	4,498			5,354			4,774
Business meals and entertainment — non-deductible	190			458			987
Change in valuation allowance	435			176			932
Reserves for uncertain tax positions	(104)			(1,290)			(263)
Share-based compensation	(4,187)			(2,394)			(4,773)
Non-deductible expenses	1,408			787			713
Other, net	351			317			(37)
Provision for income taxes from continuing operations	$	22,129		$	25,141		$	21,840
Effective income tax rate	23.8		%	24.3		%	23.5		%

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, 2021 and 2020, were as follows (in thousands):

	2021		2020
Deferred tax assets:
Net operating loss carryforwards	$	1,202	$	1,249
Allowance for doubtful accounts	3,613		3,288
Employee benefits and compensation	33,549		30,151
Lease costs	5,726		6,291
State tax credit carryforwards	189		1,291
Deferral of employer FICA taxes	1,961		3,983
Other deferred tax assets	589		424
Total gross deferred tax assets	46,829		46,677
Less: valuation allowance	(2,046)		(2,663)
Total deferred tax assets, net	44,783		44,014
Deferred tax liabilities:
Client list intangible assets	250		524
Goodwill and other intangibles	57,740		49,680
Property and equipment	1,488		2,071
Other deferred tax liabilities	745		491
Total gross deferred tax liabilities	60,223		52,766
Deferred income taxes, net	$	(15,440)	$	(8,752)

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):

	2021		2020		2019
Balance at January 1	$	1,536	$	2,536	$	2,819
Additions for tax positions of the current year	161		150		145
Additions for positions of prior years	400		—		—
Settlements of prior year positions	(374)		—		(282)
Lapse of statutes of limitation	(129)		(1,150)		(146)
Balance at December 31	$	1,594	$	1,536	$	2,536