WHAT'S THE VALUE?
The QSB R&D Payroll Tax Credit reduces early-stage companies U.S. labor costs up to 6.2%, capped at $250,000 per year. Qualified companies may claim credits on 2017 federal income tax returns and apply these credits against OASDI payroll taxes in 2018.

WHO QUALIFIES?
A “Qualified Small Business” is defined as any company with less than 5 years of revenues and less than $5MM in the current year of revenues with qualifying research activities and expenditures.

TIMING
To take advantage of the benefit, eligible companies must act by claiming the credits on a 2017 income tax return. Credits cannot be applied against payroll taxes until the quarter after the 2017 income tax return is filed. Once filed, starting the following quarter, taxpayers may begin offsetting payroll tax on a per-pay period basis until the credits are completed utilized.

PROCESS
File federal tax returns ASAP     
Include Form 6765 claiming the R&D tax credit. Starting the following quarter, the Company files its quarterly payroll tax return (Form 941). Repeat the process until credits are fully utilized.

• Tax incentives and credits
• Valuation
• Accounting & tax treatment
• Tax compliance

• Stock-based compensation plans & HR support
• IPO preparedness
• Advisory - structuring for international growth
• Design & implementation of operating structures