We Can Help Extend Runway During COVID-19

Post by
Ahmad Ibrahim
We Can Help Extend Runway During COVID-19

At this historic and destabilizing moment, the need to save money and extend runway is more important than ever for startups. At neo.tax, we’ve built a tax tool that can instantly begin helping you weather the storm. Our automated service completes the R&D tax credit in minutes, saving startups up to $250,000 in payroll costs. That money can be the difference that lets your company continue through this existential moment. So, start the process right now!

There are a few COVID-related deferrals available and we strive to help guide our customers down the best path for all their tax needs. The most beneficial and available deferral to ALL businesses is the "Employer Payroll Tax Deferral" under the CARES Act. There are other incentives, but they are either small or require you to jump through hoops — the Employer Payroll Tax Deferral is something everyone should take advantage of.

Each payroll provider will have a list of Covid-19 resources available; usually, enrolling in the Employer Payroll Tax Deferral is as easy as a few clicks. For example, Gusto customers should select the “COVID-19” link and then simply press the "Defer Federal Taxes" button.

However, applying for the Deferral is no reason to put off claiming your R&D Tax Credit with neo.tax. In fact, because the Deferral savings will eventually need to be paid back, the R&D Tax Credit can serve as a helpful buffer; the money you save on payroll each month can be earmarked to repay the Deferral. 

They say there’s no such thing as free money, but the R&D Tax Credit was made for just that reason — to put money back into the coffers of the early-stage startups that are driving innovation. Far too many businesses are leaving money on the table; with neo.tax, it only takes 15 minutes to extend your startup’s runway. So why not do it today? 

If you have any questions about the R&D Tax Credit or the Employer Payroll Tax Deferral, don’t hesitate to set up a call. Here’s a link to our Chief Tax Officer Stephen Yarbrough's calendar!