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Cost Free
Presentation Length 1.0 hour

Recorded DateAugust 29, 2017
CPE:Not available
(archived webinars do not offer CPE credits)
Subject AreaTaxes
Course LevelBasic
Course Description

Recent legislation now allows certain small businesses to utilize their Federal Research & Development (R&D) tax credit of up to $250,000 against their employer Social Security tax liability.

Join this webinar to learn:
• What is the R&D tax credit and what expenses qualify?
• How is the credit claimed and what forms need to be filed?
• What is the ‘small business’ criteria?


The federal R&D tax credit is generally utilized against federal income tax; however certain small businesses may be able to utilize the credit against the company's employer Social Security tax liability. Qualified small businesses must have less than $5M in gross receipts in the year of the credit claim and have $0 gross receipts in any tax year preceding the five-tax-year period that ends with the tax year of the election. The federal R&D credit generally equates to 6-13% of qualifying research expenses (“QREs”) from qualifying research activities. These activities are associated with creating or improving a product or process, and must meet a 4-part test.
Familiarize yourself with the R&D tax credit to stay relevant to calendar year-end 2016 (and later) tax filings. Delight your clients by reducing their payroll tax liability through this little-known tax credit.

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Kathleen Milone has over 10 years of Big 4 experience, specializing in R&D tax credit studies for clients of varying sizes and industries, including many within the Fortune 500. Her experience includes tax controversy services for such claims and time spent in a Big 4, Washington National tax practice, where she focused on more technical credit and accounting method areas. She has authored articles, including a few R&D tax credit publications in the Bureau of National of Affairs (BNA). Kathleen has been a speaker at Tax Executive Institute and presented at other industry events. Special focus areas of Kathleen include identifying challenging qualifying activities within the software industry, and manufacturing trials activities within the packaging industry.


Michael Nierstedt works with the Product team for Payroll at Gusto. Michael has over eight years of experience in the payroll industry, previously working on helping many of the top payroll service providers with custom tax software implementations. Over the last two years with Gusto, Michael has worked on better supporting fringe benefits, IRS tax payment and filing automation, and courtesy withholding. Recently, Michael has worked to automate R&D tax credit for payroll, empowering accountants to create new revenue channels and support their clients.

About Our Sponsor

Gusto serves 200,000+ small businesses and 7,000+ accounting firms nationwide. Each year we process tens of billions of dollars of payroll and provide employee benefits—like health insurance and 401(k) accounts—while helping companies create incredible work places.

Through one refreshingly easy, integrated platform, we automate and simplify your payroll, benefits, and HR, all while providing expert support. You and your employees will get the peace of mind you need to do your best work.