Hiring Credit for Small Businesses-Extended to 2012

The 2012 federal budget extended the hiring credit for small business (HCSB), a one-time credit intended to stimulate new employment and support small businesses. The HCSB provides small businesses relief from the employer’s share of employment insurance (EI) premiums paid in 2012. The credit does this by paying up to $1,000 based on increases in an employer’s EI premiums paid in 2012 compared to those paid in 2011.

 The HCSB is for employers and business that pay the employer’s share of EI premiums to a payroll (RP) account.

If your total employer EI premiums in 2011 were $10,000 or less you may qualify provided your total premiums increased in 2012.

If you opened, closed or restructured your business in 2012 you may still qualify for the HCSB.

 If your business is eligible, the CRA will automatically calculate the amount of the HCSB using the EI information from the T4 slips you filed with your 2011 and 2012 T4 information returns. The amount to be credited to your payroll account will be greater than $2 and not more than $1,000.