About the hiring credit for small businesses (HCSB)
The hiring credit for small businesses (HCSB) is a one-time credit that small business owners receive if they're eligible. The credit is paid up to $1000 based on the increase in an Employer's EI premiums paid in 2011.
Here's a few other things you should know:
- Once you submit your T4 Summary, the CRA calculates the amount of the credit.
- This credit is applied to the payroll account for amounts over $2.00 and up to $1000.
- The HCSB is applied to any outstanding balance of the payroll accounts and any balance is transferred to the current year.
- The Statement of Account will identify how the credit was applied.
- This is considered business income which can be used to reduce your EI Expense (Payroll Expense).
For more information on the HCSB, visit the CRA website.