Can Form 8815 Wages 2022-2023

Instructions and Help about Can Form 8815 Wages

Should you take out money in the form of salary or dividend from your company today we will first talk about the pros and cons of the two then I'll walk you to a couple of examples then I will tell you what you should think about before making the final decision and in the end talk about some important for you to consider going forward let's get started with salary first the advantages with salary or the amount declared a salary is deductible to the corporation thus reducing the taxable income you're able to contribute into your autoresponder salary there is an opportunity to splitting income with other family members who are employees of the company to reduce the overall tax liability and you're eligible for full CPP benefits after retirement the disadvantages with Sally are that it is taxed at a higher rate than dividend you have to paint CPP so you have to pay the employee and the entire portion so your cash flow takes a little hit lastly there is admin time spent on payroll and issued defaults as required by the CRA now the advantages with dividend are the three types of dividend non-eligible eligible and capital dividend i will do a separate video on these three types of dividend then there is an opportunity to split income with other shareholders dividends are taxed at a lower rate than salary you don't need to make any CPP deductions or remittances and you can pay yourself a different just by writing a check it's as simple as that the disadvantage with dividends are that they are not deductible to the corporation they are paid from the after-tax profits of the corporation you don't get any room for RSP contribution you're not able to claim certain tax...