KPMG LLP, the U.S. audit, tax and advisory firm, and ADP®, a leading provider of HR and payroll solutions, today announced a joint service that can help eligible companies more efficiently and effectively realize the benefits of the federal research and development tax credit or R&D Tax Credit.

“The R&D Tax Credit may be one of the more underutilized opportunities afforded to U.S. businesses,” says Jeffrey C. LeSage, KPMG’s Vice Chairman – Tax. “Thousands of companies may be leaving the benefits of the new, broader laws applicable to receiving the R&D Tax Credit on the table, which is why we formed an alliance with ADP to help clients identify and capture the available tax credits associated with their eligible R&D investments.”

The joint service from KPMG and ADP can help eligible clients in all industries and of all sizes, including start-ups and small businesses, take advantage of the now-permanent federal R&D Tax Credit, which was expanded in 2016 to offer a reduction in tax liability for many small to medium-sized companies that previously may have been unable to monetize these credits. If a business invests in the development or improvement of products, manufacturing processes, software, techniques, formulas, or inventions, they may now qualify for this tax credit.

KPMG and ADP collaborate during the entire process from initial review to delivering a client approach to identifying potential benefits from the tax credit by combining ADP payroll information with insights from KPMG’s experienced R&D tax credit professionals to help clients more easily navigate the complex process required to identify and capture the available tax credits associated with their R&D investments.

“ADP has extensive experience in delivering tax credits and incentives solutions to its clients and the marketplace,” said Doug Politi, President of Added Value Services at ADP. “In fact, each year ADP helps its clients realize significant savings in tax credits and incentives under programs, such as the Work Opportunity Tax Credit, job creation credits, training credits, negotiated and saleable credits, and more. Now, with the expansion of the R&D Tax Credit, ADP recognizes that thousands of organizations may be evaluating the potential impact of the new law’s applicability to their operations.” 

While the R&D Tax Credit can be beneficial for a wide range of companies, the eligibility and documentation requirements are significant and complex.

“Using payroll data and its tax credit service model infrastructure, ADP works with KPMG to help companies review investment areas to determine qualified activities and identify eligible expenses; perform an R&D study; and assemble the supporting documentation needed to capture the R&D Tax Credits for which a client is eligible,” Politi continued. “This critical program helps enable business leaders to focus on re-investing and re-invigorating their business with concepts, ideas and innovations that will translate into compelling products and services for their own customers.”

KPMG and ADP will provide more information about capturing these important tax credits during a live webcast on September 28 at 1:00 pm ET.

KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the independent U.S. member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s independent member firms have 189,000 professionals, including more than 9,000 partners, in 152 countries. Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.

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Kristen Morgan
KPMG LLP
kmorgan@kpmg.com
410-949-2668

Kate Rankin
ADP, LLC
201 452-1803
Kate.rankin@adp.com