How do I best pay myself regularly from my Corporation?

SOLVED

I have a small corporation which is owned 50-50 by my wife and myself. It's basically a consulting firm where I am the only one working in it. My question is what is the best way to pay myself on a regular basis?

I have heard that dividends is one option. If so, can I do that throughout the year? A second option is to set up a payroll or an employer account with the CRA. If I do payroll, does this mean I have to add a payroll module to my Sage Pro 50 CDN program?

Any suggestions or recommendations?

Thanks,

  • +1
    verified answer

    You are asking us to predict the best options for your personal and corporate tax situation.  We can't do that.  It is best you discuss this with your accountant, that's their job.

    If you choose payroll, no you don't have to add payroll to your Sage 50 program.  You can do it all manually, including calculation of the company portion of CPP if applicable, and pay yourself through the payables module and do your T4's on the CRA website at the end of the year.  I wouldn't do this with a lot of employees but for yourself it is not too difficult.

    You would have to do remittances, even if you don't pay yourself during a period.