The credit will be actualized once you file your tax return. This credit comes as either payroll tax offset or an income tax offset.
The general rules are the following:
- If you have less than $5m in gross receipts for all of your previous fiscal years and less than 5 years of gross receipts - Payroll Tax Credit
- If you have more than $5m in gross receipts any previous fiscal years or gross receipts dating back more than 5 years - Income Tax Credit
If you are qualified to claim the payroll tax credit, but your total tax credit exceeds $250,000 or you have a tax burden that is less than your total credit while you are a qualifying small business, you can choose to split the credit between both payroll taxes (which caps at $250k) and income taxes.
Note: these rules are not one size fits all. Our onboarding specialists are more than happy to assist you to see how you may be able to claim this credit - schedule some time to chat with one of them here.