Funding for Small Business Update: Hiring Credit for Small Business Extended

The Canada Revenue Agency (CRA) announced last week that it has extended this incentive program for SME employers.   In addition to several small business grants programs, the Government of Canada has also decided to extend 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 across the country.   Those who are self-employed may also be eligible for the hiring credit; the credit of up to $1,000 will automatically credit their payroll account.

Details of the HCSB Tax Credit:

• The HCSB is a credit of up to $1,000.
• The amount credited under this program (up to $1,000) offsets the increase in Employment Insurance paid by in 2012 over those paid in 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.
• 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, visit the Canada Revenue Agency Website.

How to Apply for this Funding for Small Business Tax Credit:

It is not necessary to apply for the HCSB.  If you are eligible for this tax credit the CRA will automatically calculate the credit using your EI information from T4 slips you file.

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