R&D tax credits reward companies with employees performing innovative research tasks.
Many business owners are still learning about the federal Research and Development tax program and its generous rewards for corporate taxpayers. One important aspect of the R&D Tax Credit is the ability for it to integrate payroll taxes in calculating your yearly credit. For many businesses and startups, this is especially valuable.
Investing in Employees Could Result in Even More Tax Credits
A Los Angeles based architecture firm hired us to examine and audit their 2019 tax season to verify if their business qualified for additional R&D tax credits. After their free initial assessment, we closely reviewed the activities performed by the company staff for Qualified Research Expenditures (QRE), past projects and payroll hours.
Our tax experts know that employee wages can greatly affect the overall improvement of a company’s tax situation. Our staff received the client’s submission of employee hours, and noted a blind spot in how the company reported employee time. Our staff predicted we could increase the firm’s R&D tax credit by reexamining the employees’ activities.
We took a second look at specific tasks that the employees were doing that the client had disregarded as insignificant. Our complete review made a big difference in how employee tasks were categorized, and the client saw a $42,000 overall increase in their qualified employee wages.
Schedule Your Free Assessment
At National Tax Group, we can examine your employee tasks and record them to comply with the detailed R&D tax credit guidelines. We have over 20 years of expertise in the field with real-world results. Call our national tax experts at (561) 257-3436 to schedule your free initial assessment.