TaxTrex
TaxTrex

R&D Tax Incentive: Claiming salaries

Salaries can be claimed under the R&D Tax Incentive if they are incurred on eligible R&D activities. Employees must have been directly engaged in carrying out the eligible activity which may include employees and/or researchers who carried out the creation of new knowledge. Expenditure must also be incurred before it may be claimed as a notional R&D deduction.

Tax
  • salaries
  • wages
  • allowances
  • bonuses
  • overtime and penalty rate payments
  • annual, sick and long service leave
  • superannuation fund contributions (which are otherwise deductible under section 690-60 of the ITAA 1997)
  • payroll tax and workers compensation insurance premiums.

It is best to pay a salary before the 30th of June in order to accurately value the contribution to R&D in a company, which is evidenced by payment of the PAYG tax payable in mid-July. Additionally, the associated superannuation guarantee levy associated to any salaries paid should also be paid to evade any penalties to your company. Moreover, it is important to note that Director fees are not eligible under the R&D Tax Incentive.

When claiming salaries it is important to keep appropriate records such as timesheets, jobs cards and other supporting time stamped documents. This will help substantiate how much time a specific researcher/employee has spent on a project, and will also support a claim in the event of an AusIndustry Audit.

For more information about the R&D Tax Incentive please Contact Us

How can we help you document your salaries?

TaxTrex provides tools to manage an R&D claim service in-house from initial assessment to the claim submission. Relevant information necessary for the R&D claim will be:

Relevant information necessary for the R&D claim will be:

  • extracted,
  • time-stamped; and
  • securely stored.