Payroll Tax Credit:
Receive a credit of up to $2.5M

Startups with less than $5 million in gross receipts can use the R&D tax credit to offset their payroll tax liability.

What is the Payroll Tax Credit?

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 makes the Payroll Tax Credit Secure, Quick and Accurate!

Our digitized tax tool makes claiming Tax Credits for your business smoother, faster, and more accurate- allowing you to focus on what’s next!

Through integrations and an easy-to-use- interface, you can sync your payroll and accounting software to share relevant business data and information.

Complete your claim on your own time while our team of tax and technical experts helps you maximize your credit.

Start your claim!

arrow_outwardarrow_outward

What can the Payroll R&D Tax Credit do for your business?

account_balance

Freeing up cash for your business

How it works?

integration_instructions

Connect your system

Our software integrates with your existing applications so you can easily share files and business data.

monetization_on

Maximize your credits

Before you file, our tax experts evaluate each claim to ensure it’s accurate, complete, and audit defensible – enabling you to optimize your returns.

savings

Power what’s next

Harness the credits you’ve earned to drive growth, hire new talent, and power tomorrow’s projects.

Great People
Define our Success

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!

Matthew Demerle, JD Law

Tax Attorney

Brigid Lenihan, M.Sc. Tax

Senior Tax Manager

Jennifer Bolton, LL.M Taxation, J.D, B.A.

Head of Tax

FAQs

Everything you need to know about the Payroll Tax Credit

Can’t find the answer you’re looking for? Please contact our team

Can I still qualify if my company is currently pre-revenue? keyboard_arrow_down keyboard_arrow_up

Yes! Pre-revenue companies are still eligible.

Can my business receive credits for work done in previous years? keyboard_arrow_down keyboard_arrow_up

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!

What if I don’t know exactly how many hours my business has spent on Research and Development? keyboard_arrow_down keyboard_arrow_up

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.

How can I claim the R&D Tax Credit? How can REV help? keyboard_arrow_down keyboard_arrow_up

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.

How can my company use the credit? Are there any limitations? keyboard_arrow_down keyboard_arrow_up

You can use your R&D tax credit however you’d like — to grow your company, hire new talent, reinvest in innovation, and more!

How does the Payroll R&D Credit differ from the regular R&D Credit? keyboard_arrow_down keyboard_arrow_up

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.

When will I see the benefits from claiming this R&D Tax Credit? keyboard_arrow_down keyboard_arrow_up

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!

arrow_outward arrow_outward

Payroll Tax Credit:
Receive a credit of up to $2.5M

What is the Payroll Tax Credit?

Leyton makes the Payroll Tax Credit Secure, Quick and Accurate!

What can the Payroll R&D Tax Credit do for your business?

Immediate reduction in your payroll tax liability

Secure credits for future tax liabilities