Startups with less than $5 million in gross receipts can use the R&D tax credit to offset their payroll tax liability.
This version of the R&D Tax Credit was created in 2015 through the Protecting Americans from Tax Hikes (PATH) Act to benefit younger companies with no or little income tax liability. While this credit cannot be claimed retroactively, it allows companies who invest resources in Research and Development (R&D) to qualify for an R&D tax credit. For 2022, you can potentially claim up to $250,000 and for 2023 moving forward, you can potentially claim up to $500,000. The Payroll Tax Credit can be claimed for a maximum of 5 years and must be filed timely, allowing startups and small businesses to reduce their payroll taxes.
If your company pays income taxes, you may qualify for the R&D Tax Credit.
Leyton powered by REV is a cutting-edge tax credit service that combines technology with our best-in-class tax team. Through integrations and an easy-to-use interface, startups and small businesses can claim tax credits.
Our expert tax team uses a proven, tech-enabled analysis process to ensure every claim is accurate, complete, and audit defensible.
Working with your internal team and existing CPAs, we’ll determine the best way to achieve your company’s goals.
Merging user-friendly features with innovative technology, the REV platform allows you to save time through secures exchanges and obtain visibility of all processes.
We help you maximize your credits, so you never have to worry about leaving money on the table. Plus, you only pay if you qualify.
Quickly sync your payroll and accounting software to share relevant business data and information.
Get money back from the IRS — and use it however you’d like! Hire new talent, launch a new project, or elongate your runway.
Meet our team of Tax and Technical experts who can help you claim up to $250,000 for your current year filing or reduce payroll tax liability!
Senior Tax Manager
Head of Tax
Everything you need to know about the Payroll Tax Credit
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Yes! Pre-revenue companies are still eligible.
Yes! You can receive credits for past research and development, however, you will need to reach out to our team before claiming your credit to ensure this work qualifies. The Payroll Tax Credit is only relevant to the most recent tax year. Contact us here!
Not to worry — we’ll help you calculate the number of hours, or percentage of the time, your team has spent on research and development. Plus, you can connect your payroll software or manually upload W2 forms to share salary information.
Our digitized tax tool, REV, makes claiming Tax Credits for your business simpler, easier and more accurate. Once you submit your information, our team will evaluate your claim for accuracy, confirm its eligibility, and prepare a detailed report for you to use when filing your taxes. While our team doesn’t file for you, we’ll provide you with the forms and instructions to maximize your return and ensure your claim is audit defensible.
You can use your R&D tax credit however you’d like — to grow your company, hire new talent, reinvest in innovation, and more!
The Payroll R&D Credit was created to enable newer and small businesses to find an immediate return on their R&D activities. The federal government outlined special criteria that enable these businesses to claim this credit and immediately apply them to their payroll tax liability as opposed to their income tax liability, which these newer businesses may not have. The regular R&D credit can only be applied against income tax liability.
The Payroll R&D Tax Credit is applied the quarter after you claim and will eliminate your payroll tax liability on an ongoing basis until the credit is exhausted. If you have no immediate tax liability, your credits may be carried forward indefinitely. How the credit is applied may depend on your payroll provider.
Start Your Claim with Leyton!