The federal government recognizes the important contribution made by small businesses across the country and the challenges they face. That is why Canada’s Economic Action Plan 2012 extended the temporary Hiring Credit for Small Business for one year.
This production is brought to you by Canada’s Economic Action Plan
Hiring Credit for Small Business or HCSB
Meet Julie, she is a small business owner.
What is the hiring credit for small business?
The 2012 federal budget extended the hiring credit for small business; a credit intended to stimulate new employment and support small businesses. The HCSB gives small businesses relief from the employer's share of employment insurance premiums paid in 2012. The credit does this by paying up to $1,000, based on the increase in an employer's EI premiums paid in 2012 over those paid in 2011.
How can I tell if I am eligible?
You are eligible for this credit if you meet all of the following conditions:
- you deducted EI premiums from the remuneration you paid to your employees, or paid the worker's share of EI premiums for barbers, hairdressers, fishers, or drivers of taxis and other passenger-carrying vehicles, and you remitted these premiums (along with your share of EI premiums) to your payroll (or RP) account;
- you reported the income and deductions on a T4 slip and filed this information on your RP account for 2011 and 2012;
- the total of employer EI premiums you paid for 2011 was $10,000 or less; and
- your total employer EI premiums increased in 2012.
Is there a time limit?
No HCSB will be allowed if we receive your original 2012 T4 return or returns, or any amended, cancelled or additional T4 slips, for 2011 or 2012, on or after January 1, 2016.
Thank you very much. What else should I know?
For more information, visit cra.gc.ca
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