Although the 2011 federal budget tabled in March was not directly responsible for an election, a change in government and one of the most interesting election results in recent history, it was certainly a contributing factor. When the excitement was over however, the budget pretty much remained the same. The budget’s primary focus is the economy and includes provisions to stimulate jobs and growth, while, for the most part, maintaining current tax rates. Some provisions that impact small business are discussed below:
Temporary Hiring Credit
A one-time credit of up to $1,000 based on the increase in an employer's employment insurance (EI) premiums paid for 2011 over those paid for 2010.
Small businesses whose EI premiums were less than $10,000 in 2010 and whose premiums increased in 2011 from 2010, are eligible for a one time credit. The credit will be automatically calculated when you submit your T4s and summaries for 2011. The deadline, to be eligible for the credit, is January 15, 2015 (if you haven’t filed your T4s by this time, you probably have bigger problems).
Note that you cannot reduce your payroll deductions by the amounts anticipated. You must wait for the CRA assessment subsequent to filing your T4 returns.Read More