Navigating SR&ED Claims Impacted by Federal Assistance

Can you give me an example?

  1. Calculate gross salaries that are SR&ED eligible for the year – in our example, if the developer is making $125,000 and is spending 80% of their time on applicable activities, this would work out to be $100,000
  2. Next, add the allowed overhead on those salaries (55%) which is equivalent to $55,000 — at this stage, total SR&ED eligible expenses are $155,000
  3. Then, deduct ALL government assistance (IRAP, CEWS, Temporary Wage Subsidy, Supercluster funding, etc.) — in our case, that’s $50,000 — resulting in eligible expenses of $105,000
  4. Now you can calculate SR&ED credits on the eligible $105,000!!

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