How to apply R&D tax credits against payroll taxes

With the spring tax season wrapping up soon, we wanted to answer some common questions specific to the payroll tax credit (using R&D tax credits to offset payroll taxes). The payroll tax credit is available to companies that meet both of these criteria: 1. Have less than $5 million in gross receipts in the tax year claiming the credit. 2. Have gross receipts for five years or less. Yes. $250,000 per year up to five years. The payroll tax credit can offset the OASDI (Social Security) portion taxes for all employees (not just your R&D employees). You can start applying your R&D tax credit against payroll taxes the first quarter after claiming your R&D tax credit on your Federal tax … Read More