Today CRA release a guidance document on allocation of labour expenditures for SR&ED. The following statement was included with the release:
“Many scientific research and experimental development (SR&ED) claimants have information systems that capture information about SR&ED projects and related costs as a project progresses. These systems can be electronic or paper based and may include a variety of methods of capturing information about the SR&ED labour for the purposes of calculating SR&ED salaries and wages. Where formal systems have not been implemented, claimants can determine SR&ED salaries and wages using appropriate labour allocation methodologies. This document is intended to provide guidance on the elements of such methodologies and to provide an illustration of a sample application.”

The document can be accessed by clicking on the link below.

Guidance Document - Allocation of Labour Expenditures for SR&ED [1]