Are you engaged in:
- Manufacturing Products
- Developing new, improved, or more reliable products / processes / formulas
- Developing prototypes or models (including computer-generated models)
- Designing tools, jigs, molds or dies
- Developing or applying for patents
- Performing certification testing
- Conducting testing of new concepts & technology
- Developing and introducing new technology
- Developing or improving production and/or manufacturing processes
- Performing environmental testing
- Developing, upgrading or implementing systems and/or software
- Automating and/or streamlining internal processes
- Expending resources on outside consultants / contractors to do any of the above-stated activities
- Attempting the use of new materials and compounds
- Engineering
- Designing – layout, schematics, Auto-CAD
- Testing or quality assurance: ISO 900X, UL, Six Sigma or other certifications
- Integrating new machinery (CNC, SLA, SLE, etc.)
- Software development or improvement (internal use or for external sale)
THE PATH ACT STARTUP PAYROLL TAX CREDIT
SYNOPSIS: The "PATH Act" Business Startup Payroll Tax Credt
What is it? A sub-section of the Section 41 R&D Tax Credit, specifically for “start-ups” as defined by the IRS, enacted in 2015 with President Obama’s PATH (People Against Tax Hikes) Act
What’s the benefit? A revolutionary tax credit against payroll taxes!
Who is it for? Companies that engage in “technical” activities and; 1) have made money 5 years or less and, 2) have a W-2 payroll of $250K or more, and 3) have a top-line revenue of less than $5 million
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Incredible program is a credit against payroll taxes!
In December 2015 President Obama signed into law "The PATH Act" (People Against Tax Hikes). The benefits of this act, to you as a U.S. businessman in the manufacturing or tech sector, are remarkable. Let’s talk about Fed Section 41 of the tax code.
Section 41, AKA the “archaically-named” Research & Development Tax Credit is a wage-based tax credit that allows businesses who perform “technically” oriented activities to take a 20% credit on their federal taxes on those wages while performing those activities. This list of “qualifying activities” far eclipses pure “research and development” activities you might think about, or be familiar with. A non-exhaustive list of qualifying activities is shown to the left.
For instance; Let’s take the local sheet metal fabricator who does custom work for their clients. The owner of this small company may have to do design for the client. The machine operator may have to do a special setup on his or her machines. The Admin Assistant may be on an employee task force to get an ISO certification or maybe help plan for the installation of some new equipment that will make the company more competitive. All of these activities may qualify for the deduction.
So, those of you who know about the R&D credit may say; “OK, so what’s new about that?” Well, one of the new elements of the PATH Act is that there is now a special incentive for what the feds call a “Start Up.” And this IS radically new. This new provision allows “Start Ups” to use the same qualifying rules as previous section 41 requirements, but will apply the deduction against payroll taxes!
You can get excited now if: you have made any money for five years or less, have a W-2 payroll of $250K or more, and will have a 2016 top line “gross” revenue of $5 million or less. If you are in this “Start Up” bucket, you need to call us ASAP. You can actually be at a net operating loss (NOL) and get a credit against your payroll taxes!
Hello - We ENHANCE YOUR PROFIT LINE
All of our savings and incentive programs bolster your bottom line, but programs such as the Virtual Payments Accounts Payable Solution actually create additional income by capturing rebates for your company, as you would, personally, with your own rewards credit cards.
HELLO - WE CREATE COST-SAVINGS
You can calculate yourself what a single dollar of cost-savings represents in relation to generation of your front-end revenue. We often find thousands, hundreds of thousands, or even millions of dollars of cost savings with a myriad of our contingency-based, unique programs. Give us a try.
HELLO - WE FIND Tax Incentives
Our Tax Incentive Team of expert engineers, attorneys and accountants does only one thing…tax incentives. They are expert at it, have the studies perfected, and find millions of dollars of "hidden" tax incentive money for our clients every year.
☎︎ Schedule us for a complimentary 15-minute assessment call
We'd love to help you find some "hidden money." Click the "Let's Chat" button and schedule a 15-minute call with us at your convenience. 15 minutes is all we need to determine which of our many contingency-based programs you may be eligible for!
WHY CHOOSE US?
With the experience of more than 20 years in the cost-recovery arena, we are sure to find you some "hidden money."
Us...
Apropos Communications, Inc., DBA "We Find Hidden Money" is a ten-year-old Cost-Recovery Consultancy, incorporated in California in 2013, and part of a resource-rich collective of Consultant Advisors across the United States
