CRA extends hiring credit for small biz

The CRA has extended the Hiring Credit for Small Business (HCSB) for 2012.

This means, if clients are self-employed, they may be eligible for the credit. It gives small businesses relief from the employer’s share of employment insurance (EI) premiums paid in 2012. The credit of up to $1,000 will be automatically credited to their payroll accounts.

Read: 6 ways to trim a tax bill

Clients don’t need to apply for the HCSB. If they’re eligible, the CRA will automatically calculate the credit using the EI information from the T4 slips you file—no added paperwork or red tape.

Read: Does inflation affect your clients’ taxes?

Facts

• The actual amount credited (up to $1,000) is equal to the increase in the EI premiums paid by a business in 2012 over those paid for 2011;
• 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 CRA applies the amount of the credit to reduce any outstanding debt owed.

For more information, visit www.cra.gc.ca/hiringcredit.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.