Research Credit Against Payroll Tax (Qualified Small Business)
Internal Revenue Service
Up to $500,000 per year of research credit applied against payroll tax
A qualified small business can elect to apply part of its research credit against the employer portion of payroll taxes instead of income tax, which helps startups that have no income tax liability yet.
- Eligibility
- A corporation or partnership with gross receipts under $5 million for the tax year and no gross receipts for any tax year before the five-tax-year period ending with the current tax year.
- Available in
United States- Benefits
- The credit is first used to reduce employer social security tax (up to $250,000 per quarter) and any remainder reduces employer Medicare tax.
- Details
- Tiers, how to apply, what to watch out for and sources are free with an account.
