What was the total amount of federal current taxes for Management Recruiters as of December 31, 2023?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
determined adversely, will not have a material adverse effect on our business, financial condition or results of operations. There have been no material changes in our legal proceedings as of December 31, 2023.
Note 12 – Income Tax
The provision for income taxes is comprised of the following (in thousands):
| December 31, 2023 | December 31, 2022 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the company's federal current taxes totaled $1,080 as of December 31, 2023. This is in contrast to the $1,874 reported for the previous year, December 31, 2022, indicating a decrease in federal current taxes. The state current taxes for the same period were $614, bringing the total current taxes to $1,694.
In addition to current taxes, the financial statement also includes information on deferred taxes. The federal deferred taxes were ($332), and the state deferred taxes were ($17), resulting in total deferred taxes of ($349). The provision for income taxes, which accounts for both current and deferred taxes, amounted to $1,345 as of December 31, 2023.
A prospective franchisee should understand how these figures relate to the overall financial health of Management Recruiters. While this information reflects the corporate tax obligations, it provides insight into the profitability and tax management strategies of the franchisor. Understanding these trends can help a franchisee assess the financial stability of Management Recruiters and its ability to support its franchisees.