The HCSB for 2013 extends the HCSB that was introduced for 2011 and 2012. The extended HCSB will be a credit of up to $1,000 based on the increase in an employer's EI premiums paid for 2013 over those paid for 2012.

The budget also proposes to expand the HCSB for 2013 so that more small businesses will be eligible to receive the credit.

A small business whose total employer EI premiums paid for 2012 was $15,000 (increased from $10,000 used for 2011 and 2012) or less and whose total premiums increased in 2013 will be eligible for a credit. The amount of the credit will be the increase between the employer's EI premiums in 2013, over those paid in 2012.

Once an eligible employer's 2013 T4 information return (T4 Summary and T4 slips) is processed, the Canada Revenue Agency (CRA) will automatically calculate the credit based on the increase in the employer's 2013 premiums over those paid for 2012. The amount to be credited to the payroll account of an eligible employer will be greater than $2, but not more than $1,000.

Yes, an HCSB will not be allowed on a 2013 T4 information return(s) received by the CRA on or after January 1, 2017.

Yes, the CRA will calculate the HCSB and apply the amount of the credit toward any outstanding amount the employer owes.

No, employers are not permitted to under-remit their 2013 payroll remittances by the amount of the HCSB they think they will get. The credit will only be calculated once the 2013 T4 information return is processed.

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its Web site often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please see the Department of Finance Canada's Budget 2013 documents for details.