The payroll offset is brand new for 2017, and it’s a very big deal.
The Research and Development Tax Credit was created by the United States government in 1981 to fuel innovation in our country. And for years, it was used almost exclusively by large companies to offset income tax. All that changed in 2015 with the passing of the PATH Act. Now small- to medium-sized startups that invest in new technology can receive similar financial benefits as the established companies. By offsetting payroll taxes, smaller, low-revenue (and even pre-revenue) companies take advantage of it for the first time.
The U.S. government created these programs to encourage business growth and to strengthen the economy, and it has made billions of dollars available as tax credits. Unfortunately, the process for filing can be intimidating and time-consuming, requiring deep tax knowledge and countless hours of reporting.
Clarus R&D was created specifically to help startups claim these credits. Our tools and expert assistance make it easy, compliant and risk-free.