Hiring credit for small business
In 2011, the federal budget introduced the hiring credit for small business (HCSB). This credit was intended to stimulate new employment and support small businesses. For 2013, the credit was expanded and extended.
The HCSB gives small businesses relief from the employer's share of employment insurance (EI) premiums paid in a year. The HCSB does this by crediting a payroll program (RP) account with up to $1,000, based on the increase in an employer's EI premiums paid in a year over those paid in the year before.
The HCSB is for employers and businesses that pay the employer's share of EI premiums to an RP account. Individuals who have chosen to pay EI premiums on their self-employed earnings are not eligible for the HCSB. Registered charities can receive the HCSB, as long as they meet the eligibility criteria. For more information, contact Service Canada.
- Eligibility criteria and credit calculation
How to tell if you are eligible for the credit, how the CRA calculates the credit, how you receive the credit, how you report your credit and what you cannot do, while waiting to receive a credit.
- Changes in your business that can affect the HCSB
How changes to your business may affect your credit.
- Reporting and time limit for getting the HCSB
When T4 returns must be filed to get a credit. Effects of amending, cancelling, or adding slips.
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