With the end of the calendar year in sight, it’s time to review the R&D tax credit reporting that you are shortly going to be asked to deliver.
TimeControl has been used for R&D tax credit reporting since it was first created and here at HMS we are well familiar with the process. Many governments in the US, Canada, Australia, UK and Europe have some kind of Research incentive program. It often occurs at both the federal and state levels. Virtually all jurisdictions have similar requests and TimeControl is well suited to the requirements of this type of tax reporting.
When creating a request for an R&D tax credit or to report on R&D grants or any similar government sponsored program, the needs are often the same. There must be timesheets used to track the time spent on the reported work. Those timesheets must track the time at a “sufficient level of detail” usually at the task level. The people who work on the projects must be eligible for the program. That usually means that they are residents of the appropriate jurisdiction and that their work is not covered under any other program. Finally, the accounting that comes from Finance must balance against the report. So the values in the request for credit has to match the values in payroll or invoices received etc.
TimeControl was designed with this kind of requirement in mind. As a multi-function timesheet it works well in the Finance structure with auditable data. As a project-oriented system, it works well in project management structure with projects and activities and as a multi-function system the flexibility of TimeControl’s data allows meta data with user defined fields to tag activities and people as eligible for different programs. That makes reporting for R&D simple.
The TimeControl website has an entire portal of resources for using TimeControl for R&D Tax Credits including a white paper that explains the triangle audit that is often required when an audit occurs. Other resources include webcasts, case studies and slide presentations.
You can find the TimeControl Research and Development portal at TimeControl.com/use-cases/r-and-d-tax-credits or contact a TimeControl Specialist at TimeControl.com/contact.
With the New Year now behind us, many organizations are turning their attention to closing the year-end and starting R&D Tax Credit calculations. Many governments at the federal, state, provincial and regional level have tax credits available under certain conditions. TimeControl is often used for R&D Tax Credit tracking because of its ability to track people and tasks at levels that will pass an R&D Tax Credit audit.
When creating an R&D Tax Credit tax return, several elements are almost always required. There must be a plan that outlines what is intended, when it should occur and what type of resources are used. There must be timesheets to track the time spent on the tasks of the R&D projects along with who did those tasks, where those resources are based and how they are paid. Finally, there must be an accounting of the value of the work that matches the timesheets, the payroll and the job costing, and which can be associated back to the original plan.
TimeControl is ideally suited for this role. With links for popular project management tools like Microsoft Project, Primavera, BrightWork and more and to ERP systems like SAP, Oracle and Microsoft Dynamics, TimeControl can be the auditable trail of project actuals that serve both the Project and Finance processes within the business.
We keep an R&D Tax Credit Resource Portal on the TimeControl.com site at TimeControl.com/use-cases/r-and-d-tax-credits. It includes recently updated White Papers, Slide presentations and screen shots of TimeControl reports which can be requested from HMS Support.
Find out more on the TimeControl.com site or contact us at email@example.com to see how TimeControl can help with your R&D Tax Credit reports moving forward.