Company: PAYC
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-024136
Chunk: 216

Company: Paycom Software, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 8
Chunk 216
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 Stock

        Restricted Stock

        Awards

        Units

        Unrecognized compensation cost
         
        $
        186.7

        $
        3.2

        Weighted average period for recognition (years)

        2.4

        1.1

      We capitalized stock-based compensation costs related to software developed for internal use of $17.5 million, $14.7 million and $9.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.In May 2023, our Board of Directors adopted a dividend policy under which we intend to pay quarterly cash dividends on our common stock. All unvested shares of restricted stock, RSUs and PSUs currently outstanding are entitled to receive dividends or dividend equivalents, provided that such dividends or dividend equivalents are withheld by the Company and distributed to the applicable holder upon the release of restrictions on such shares of restricted stock, RSUs or PSUs (i.e., upon vesting).

13.COMMITMENTS AND CONTINGENCIESEmployment AgreementsWe have employment agreements with certain of our executive officers. The agreements allow for annual compensation, participation in executive benefit plans, and performance-based cash bonuses.Legal ProceedingsWe are involved in various legal proceedings in the ordinary course of business. Although we cannot predict the outcome of these proceedings, legal matters are subject to inherent uncertainties, and there exists the possibility that the ultimate resolution of these matters could have a material adverse effect on our business, financial condition, results of operations and cash flows.

14.INCOME TAXESThe items comprising income tax expense are as follows:

        Year Ended December 31,

        2024

        2023

        2022

        Provision for current income taxes

        Federal
         
        $
        103.8

        $
        94.1

        $
        81.3

        State

        37.4

        31.9

        30.1

        Total provision for current income taxes

        141.2

        126.0

        111.4

        Provision for deferred income taxes

        Federal

        3.9

        5.4

        (2.8
        )

        State

        1.9

        0.2

        (0.4
        )

        Total provision for deferred income taxes

        5.8

        5.6

        (