Hiring credit for small business (HCSB)
The 2011 federal budget created a hiring credit for small business (HCSB), a credit intended to stimulate new employment and support small businesses. The 2012 federal budget extended the HCSB for 2012. The latest federal budget proposes to expand and extend the HCSB for 2013.
The HCSB gives small businesses relief from the employer's share of employment insurance (EI) premiums paid in a year. It does this by crediting up to $1,000 on the payroll account, based on the increase in an employer's EI premiums paid in one 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 a payroll (RP) account. Individuals who have chosen to pay EI premiums on their self-employed earnings are not eligible for the HCSB. For more information, contact Service Canada.
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