Are you eligible for the EI hiring credit?
In 2011, CFIB successfully lobbied the federal government to launch a one-time Hiring Credit for Small Business (HCSB) to make it easier for small business owners like you to hire new workers. One of our top budget requests for 2013 was that this credit be renewed and expanded. The government followed through on this and has renewed the EI hiring credit for 2013. Moreover, the government has increased the limit from $10,000 to $15,000!
Are you eligible?
- For 2012 – If you paid out $10,000 or less in EI premiums in 2011, and there is an increase in your EI premiums in 2012, you will be eligible to receive a credit of up to $1,000.
- For 2013 – If you paid out $15,000 or less in EI premiums in 2012, and there is an increase in your EI premiums in 2013, you will be eligible to receive a credit of up to $1,000.
Obtaining the credit is easy
If you qualify for the HCSB, the Canada Revenue Agency (CRA) will automatically calculate and issue a credit to your payroll account once your T4 information return has been filed for the year in question. Keep an eye out for this in your account.
Businesses eligible for the 2012 or 2013 EI Hiring Credit may elect to receive an actual refund for the funds remaining after the outstanding balance in their payroll account has been paid off. If you are interested in this option, you can speed up the process by signing up for direct deposit with CRA. However, it is also possible to request a cheque. You can opt to receive the refund through My Business Account or by contacting CRA by phone or in writing.
CFIB applauds the federal government’s decision to renew and expand the EI Hiring Credit for Small Business. We are currently lobbying to make this credit available permanently or at least until EI rates stop increasing.
The HCSB is considered taxable income. You will need to declare the amount received in your annual corporate tax filings.
We invite you to contact one of our Business Counsellors at 1 888 234-2232 or email@example.com for further information.
Legal Notice: This publication and its contents are for the members of the Canadian Federation of Independent Business (CFIB) only, and are not intended for any other recipient. The contents of this publication are for informational purposes and the CFIB does not warrant the accuracy, currency or suitability of any of the information provided herein. Before acting on the basis of any information contained in this publication, please seek the advice of your professional advisors.