Pasadena, California, May 16, 2017 – KBKG, a nationwide tax services firm headquartered in Pasadena, California, recently launched a free calculator to help early-stage businesses save up to $250,000 in payroll tax.
The Research and Development Tax Credit is now permanent, and its benefits extend to small businesses and start-ups who were previously unable to claim the valuable credit. Qualified Small Businesses (QSBs) may use R&D credits to offset up to $250,000 of payroll tax liability annually. A Qualified Small Business is a corporation, partnership, or individual with less than $5 million of gross receipts during the tax year, and the taxpayer did not have gross receipts for any tax year prior to the fifth tax year ending with the year of the claim.
Example: Taxpayers claiming the credit on their 2016 tax returns must have less than $5 million in gross receipts during 2016 and could not have had any gross receipts prior to 2012.
“It is critically important for early-stage companies that could qualify for the R&D Tax Credit to know the tax benefits available to them. We developed this tool to help take out the guesswork and start a conversation. We want to help innovative start-ups further their valuable work in research and development,”
– Kevin Zolriasatain, Principal of KBKG
Small businesses and start-ups can try out KBKG’s Research and Development payroll tax credit tool by entering in a few details, such as the total number of employees engaged in R&D and a number of supplies used in R&D, to instantly calculate estimated payroll tax offset. The calculator is available at KBKG.com/research-tax-credits/research-and-development-payroll-tax-credit-calculator.
Author: Kevin Zolriasatain