What is the Research Payroll Tax Credit?

Tighe, Kress & Orr.

By: Tighe, Kress & Orr.

What’s the research payroll tax credit and how does it work? On its website, the IRS answers this question for employers seeking to claim the research expense credit against their payroll tax liabilities. Employers report wages, income tax withholding and FICA taxes quarterly or annually. Qualified small businesses with eligible research expenses may claim up to $250,000 of payroll tax credit against the employer’s share of FICA taxes. Annual filers may need to file a special form to adjust the amounts reported. For details: https://bit.ly/2r8i3IX

All content provided on the TKO Insights website is for informational purposes only. Any tax advice contained in this communication (including attachments or links) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (i) avoiding tax penalties or (ii) promoting, marketing or recommending to another party the matter or transaction addressed herein. We recommend you consult your tax, audit, accounting or business valuation advisor related to any content on this site.