Sep 21, 2017 – Salary is one hundred percent taxable (unlike dividends, which are taxed at a lower rate) so it's possible that paying yourself a salary could increase your tax load. As for Canada Pension Plan (CPP), note that you will have to pay both portions of CPP as you will be both the employer and the employee.

If you own a Canadian small business corporation, you have to figure out whether you want to pay yourself a salary income or dividends – or both. The correct decision for you will come down to personal circumstances, but you should have an objective understanding of the advantages and disadvantages of each payment …

Jul 21, 2017 – This result stems from the fact that Canada taxes us on an individual basis, rather than as a family unit and imposes progressively higher tax rates on each individual, such that … (Non-eligible dividends are generally dividends paid on private company shares from income eligible for the small business rate.) …

There are now two tax rates that can apply to dividends, depending on whether they're eligible or regular dividends (see topic 143). The eligible dividend regime also means that it's no longer a rule of thumb to bonus down to the small business limit. Tax tip: Consider paying yourself a salary large enough to make maximum …

Feb 10, 2014 – For Canadian small business owners, figuring out how to pay yourself isn't always all that straightforward. These tips … Therefore, paying a dividend instead of salary will limit the room available to make a contribution to your RRSP in the following year since dividends do not count towards “earned income.