Feb 10, 2014 – In order to pay yourself a salary as a business owner, you must first set up a payroll account with the Canada Revenue Agency (CRA). … If you operate in the cloud, this process is further simplified as you can integrate your payroll data with your accounting system.

Sep 21, 2017 – If the corporation pays you a business salary, the big advantage is that you have a personal income. … Besides paying yourself, you can do some income-splitting by paying salary to related employees such as a spouse or children. ( See Pay Less Canadian Income Tax With Income Splitting).

If you want to minimize your tax exposure, you need to balance several considerations and create your own blend of salary and dividend income. For example, you probably want to pay yourself enough salary to avoid the $500,000 small business limit. You can then pay out dividends as needed.

Feb 11, 2016 – When Daniel Cowan incorporated his holiday lighting business, FestiLight, he had a decision to make about how he wanted to pay himself – as an employee or a shareholder. As an employee, Mr. Cowan would take a salary and have to contribute to the Canada Pension Plan (CPP) as both an employer …

Jan 17, 2012 – Mike Michell, national director of small business at Royal Bank of Canada, is willing to give business owners a little more wiggle room. "You should ensure you are taking out enough money to support your personal needs," he says. But the company must be able to meet its obligations and "have some …

He then said I am NOT an employee and that I do not pay myself because all income from the business is MY income. I researched online and it mentions …. Google sole-proprietorship vs incorporation and you should get a lot of clear info including pros and cons for small businesses. Also, your accountant …