News Column

Tax Tip: The Hiring Credit for Small Business Has Been Extended

Jan 23 2013 12:00AM

Marketwire

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OTTAWA, ONTARIO -- (Marketwire) -- 01/23/13 -- The Government of Canada has extended the Hiring Credit for Small Business (HCSB) for 2012. The 2011 federal budget created the HCSB to create jobs, grow the economy and support small businesses.

If you are self-employed, you may be eligible for the hiring credit for small business. This credit gives small businesses relief from the employer's share of employment insurance premiums paid in 2012. The credit of up to $1,000 will be automatically credited to your payroll account.

Facts about the HCSB

-- The HCSB is a credit of up to $1,000.-- The actual amount credited (up to $1,000) is equal to the increase in the Employment Insurance (EI) premiums paid by a business in 2012 over those paid for 2011.-- The HCSB is available to employers whose total employer EI premiums were $10,000 or less in 2011. Employers who created a new business in 2012 may also be eligible.-- The credit is automatically applied when a business files a 2012 T4 information return. To be eligible, the 2012 T4 return must be received prior to January 1, 2016.-- Eligible employers who have outstanding debt are still eligible for the HCSB. The Canada Revenue Agency (CRA) applies the amount of the credit to reduce any outstanding debt owed.-- For more information, go to www.cra.gc.ca/hiringcredit.



How do I apply for the credit?

You don't need to apply for the HCSB. If you are eligible, the CRA will automatically calculate the credit using the EI information from the T4 slips you file-no added paperwork or red tape!

Try the CRA's online services for businesses

With CRA online services for businesses, you can file, pay, and manage your tax affairs online at your convenience. For more information, go to www.cra.gc.ca/businessonline.

Stay connected (www.cra.gc.ca/socialmedia)

To receive updates when new information is added to our Web site, you can:

- follow the CRA on Twitter - @CanRevAgency;

- subscribe to a CRA electronic mailing list; and

- add our RSS feeds to your feed reader.

You can also visit us on YouTube for tax-related videos.



Contacts:
Noel Carisse
Media Relations
Canada Revenue Agency
613-952-9184





Source: Marketwire