Beginning 2016, employers with gross receipts of less than $5 million a year may be eligible for a payroll tax credit for qualified research expenses. The credit of up to $250,000 can be applied towards the company’s Social Security tax liability for the year. This is a result of the Consolidated Appropriations Act signed Dec. 18, 2015 by President Obama.
The IRS indicated that by Jan. 2017, Form 941 will have to be revised to allow for indication of the adjustment to the Social Security Tax Credit taken. The IRS will also release 2 additional forms by 2017. One is a draft of the new form for processing the credit against Social Security, Form 8974 – Qualified Small Business Payroll Tax Credit for Increasing Research Activities. The other is Form 6765 which will be used to determine the amount of the Tax Credit the business can take, which will then be reported on From 8974.
You can get information about this payroll tax research credit and Form 6765 on the IRS web site.
About Time & Pay:
Time & Pay is a professional payroll service provider located in Johnson City, TN. We service businesses of all sizes and types throughout the United States. Founded in 1992, Time & Pay provides businesses with complete payroll services , guaranteed payroll tax compliance, automated time and attendance systems and services, pay-as-you-go worker’s comp, human resource management systems and services, and more. We provide our customers with the cost effective tools you need to better manage your payroll, your employees and your business. Time & Pay’s services guarantee you will save money, time and aggravation and we back them up with the customer service you expect and deserve. Contact Us today to learn why business owners throughout the country are saying:
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