My name is Ray Cuthbert. I'm the director of the Canada pension plan and employment insurance rulings division in the legislative policy directorate of the Canada Revenue Agency.
I'm here to talk about the hiring credit for small business. It's essentially a similar credit as in the prior two budgets, with the exception that the base year's ceiling has increased from $10,000 to $15,000.
How does it work? Employers who had employer EI premiums in 2012 of $15,000 and who have had an increase in 2013 are entitled to a credit. The credit is calculated as the difference between the two years. It must be greater than $2, but not exceeding $1,000. It's calculated automatically by the Canada Revenue Agency when the employer's 2013 T4 information return is processed.