Using TimeControl for Research and Development Tax Credits
Many organizations have financial obligations to track efforts spent on Research and Development in order to qualify for R&D Tax Credits. Many governments have some tax credits or other incentives for work which qualifies research and development expenses.
Tax credit programs are typically designed by governments to encourage organizations in their region to employ people to do innovation, to focus their energies on R&D activities and to encourage the long term benefits that are possible when an organization has created something new. Such programs exist in the USA, Canada, the UK, Australia, throughout the EU and in many other countries and jurisdictions.
An organization which wishes to take advantage of R&D tax credits must document their efforts in compliance with the particular government in question. There are typically two levels of verification or audit of the claim. The first level is technical. Did the work described, meet the standards for R&D work as defined in the tax law of that jurisdiction? The second level is financial. The financial audit is what we refer to at HMS as the "Triangle Audit. This verifications looks at three aspect of the financial records to a) ensure that the data matches or balances against the other two aspects and b) to ensure that the amounts described are in compliance with the tax requirements of that jurisdiction's tax law for R&D claims. These three aspects are: 1) Payroll/HR, 2) Timesheets and; 3) Project Management.
HMS has extensive experience with R&D tax claims thanks to the success of organizations who have used our TimeControl timesheet to track R&D claims.
TimeControl is easily configurable to be able to track the basic requirements for multiple tracking at the same time. Using TimeControl, timesheets can be collected from one place and the data supplied to HR, Payroll, Billing, Project Management and the reports from TimeControl can be created as part of the organization's R&D tax return.
TimeControl includes pre-defined links for popular project management tools such as Oracle-Primavera, Microsoft Project/Project Server and Open Plan but also links to finance systems such as Oracle EBS, SAP and Microsoft Dynamics.
You'll find in the resources we've listed here descriptions of how R&D tax credit programs work in different countries and how TimeControl's easy-to-use timesheet can be configured to meet the R&D tax credit reporting requirements.
To get a personalized demonstration of TimeControl or to speak to one of our TimeControl representatives about how TimeControl can be a part of your R&D tax claim process, please fill in an Information Request.
Resources
We've assembled some resources you may find of use if you are interested in using the TimeControl timesheet for R&D Tax Credits. The white paper covers how R&D credits work
in different jurisdictions and explains how TimeControl can be configured to deliver the reports required for a financial audit. The webcast shows TimeControl already configured
for R&D tax credit tracking and how timesheets are simply entered by end users.
Webcasts:
TimeControl 6 R&D Tax Credits Webcast
We have experience with the use of TimeControl for R&D tax credits not only within Canada but all over the world. This presentation talks Research and Development tax credits and demonstrates how TimeControl can be configured to deliver R&D Tax Credit reports. Note: This webcast requires registering with the TimeControl/HMS Software website which is free.
Presentation:
R&D Tax Credits with TimeControl slides
This slide show supports the R&D Webcast and shows how HMS Software's TimeControl can be configured to support a successful R&D tax claim.
Case studies/Testimonials
Read how EXFO uses TimeControl to facilitate project management and R&D Tax Credits in Canada. (Disponible aussi en )
Client Letter: Parker Hannifin
Read what the IRS said about using TimeControl for R&D Tax Credits at Parker Hannifin in the USA.
Brochures/Factsheets:
TimeControl brochure
This is a general overview of TimeControl's capabilities in a 4-page brochure.
TimeControl and ERP
A brief overview of how TimeControl can be linked to both your ERP/Finance system and a project management system.
TimeControl Value Propositions
A point-by-point view of how TimeControl can provide benefits to your organization from 6 different perspectives.
Screen Shots:
Screenshot collection
See our collection of TimeControl screenshots illustrating all aspects of functionality. You'll find specific R&D examples that are also referenced in the R&D white paper.
Free Trial:
Try TimeControl for free!
You can evaluate TimeControl right now! You can evaluate TimeControl right now by registering for the free online hosted trial. You'll see TimeControl in action and won't need to install the system to do so.
White Papers:
R&D Tax Credits and TimeControl White Paper
Research and Development tax credits are used in many jurisdictions around the world as an incentive to locate R&D organizations, personnel and projects in that region.
This white paper describes the basic requirements of R&D claims and how HMS Software's TimeControl can be configured to support a successful R&D tax claim.
TimeControl Executive Briefing
This paper is targeted at executives who have responsiblity for the entire enterprise. Managing a project-oriented corporate environment is no small challenge and TimeControl can serve a crucial role in automating that environment. This paper will address some of the issues that executives face and how to address them.
Online Resources
Here are some references that may be of interest to you that describe the R&D programs for different government jurisdictions
United States
The IRS website at contains extensive information on filing R&D tax returns. In particular, the available at identifies the key elements of a successful R&D tax claim.
Canada
Revenue Canada maintains extensive information on how to claim an R&D tax credit on its website at . In particular, the R&D program is described in detail on the .
Quebec, Canada
The Revenue Quebec website at carries extensive information on how to benefit from and apply for the credit. Consult the R&D Brochure from Revenue Quebec for more information.
For more information:
Contact us:
Complete a Request for information to have one of our representatives contact you to discuss how TimeControl has assisted other companies in their R&D Tax credit needs.
TimeControl 6 R&D Tax Credits Webcast