Qualified services
If 80 percent or more of an employee's services are qualified services, all of their wages may be treated as qualified. Below that, only the qualifying share.
- Performing qualified research.
- Directly supervising it: immediate supervision of the research, not higher-level management.
- Directly supporting it: for example a machinist building a prototype.
Records that help
- Weekly time by project and activity.
- Ticket assignments and commit history that place an engineer on a project at a date.
- Test-log sign-offs and design-review attendance.
- Role descriptions that explain what an engineer in that role does.
- TaxTrex surveys, where completed, which record activities and time at the time.
Estimates and later confirmations
A percentage set by a manager after the year end is an estimate. It is not worthless, but an examiner will look for records from the year that support it. The mock audit rates after-the-fact allocations Weak and marks F4 as a red flag, and the fix plan asks for the corroboration.
What this guide is not
Note.This is evidence guidance. creditARMOR is not a time-tracking application and cannot create time records for a year that has passed.