Owner-Manager Remuneration Strategy
Keep more of what you earn. We evaluate the optimal balance between executive salary and corporate dividends to minimize combined corporate and personal tax.
Engagement scope & retainer
Executive remuneration modeling and dividend optimization from $450 CAD. Includes T5 filing, TOSI compliance, and shareholder loan review.
All fees confirmed before work begins following an initial diagnostic assessment. Reconciled down to $0.00 variance.
Schedule initial consultation →Overview & Scope
Optimizing salary vs. dividend distributions, shareholder loan reconciliations, and tax integration.
As the owner of an incorporated Canadian business, deciding how to pay yourself is one of the most critical financial decisions you face. Paying a salary builds CPP retirement benefits and creates RRSP contribution room, but incurs mandatory payroll taxes. Paying non-eligible dividends avoids payroll withholdings, but requires careful tracking of corporate taxes already paid. We engineer the optimal customized remuneration mix for you.
Key deliverables included
Every engagement includes comprehensive, verified deliverables designed for full compliance with CRA guidelines and seamless external CPA handoffs:
Quantitative scenarios comparing combined corporate and personal net cash flow under 100% salary, 100% dividends, or a blended approach.
Transaction-by-transaction continuity analysis tracking all personal expenses and owner capital injections.
Preparation and electronic XML filing of annual T5 dividend slips and T5 Summary with the CRA.
Configuring owner executive payroll schedules for optimal personal tax withholding without penalizing cash flow.
Ensuring shareholder percentages and ownership records in the T2 return mirror actual dividend distributions.
Monitoring non-taxable capital dividend room arising from corporate capital gains.
Common compliance traps avoided
Canadian business tax and accounting regulations are stringent. Here is how our disciplined methodology prevents costly CRA audits and administrative penalties:
Taking personal withdrawals without formally declaring them as salary or dividends within one year triggers harsh CRA income inclusion.
With Canada's new second-tier CPP2 ceiling, employer and employee matching contributions represent significant cash outflows that must be weighed.
Dividends do not count as 'earned income' for RRSP room generation or child care expense deduction eligibility.
Distributing corporate dividends without filing annual T5 information returns and summaries by the end of February incurs automatic CRA late penalties.
Prior-Year Cleanup or Review Needed?
If prior fiscal periods require historical reconstruction, unfiled HST returns, or ledger cleanup before routine monthly maintenance can begin, we perform an initial diagnostic and prepare a flat catch-up proposal.
Inquire about catch-up scope →Frequently asked questions
Clear answers regarding our Owner-Manager Remuneration Strategy scope, timelines, and Canadian accounting standards.
Is it better to take a salary or dividends from my corporation?
There is no one-size-fits-all answer. Salary generates RRSP room and builds CPP pension credits, but requires monthly remittances. Dividends have zero payroll taxes, but do not create RRSP room. We model your exact household income needs to recommend the ideal blend.
What is the penalty for having an outstanding shareholder loan balance?
Under CRA Section 15(2), if a shareholder loan is not repaid within one year from the end of the corporate fiscal year in which it was borrowed, the entire loan balance is deemed personal income to the shareholder.
When are T5 slips due for dividends paid?
T5 slips must be prepared, distributed to shareholders, and filed electronically with the CRA by the last day of February following the calendar year of payment.
Can I pay dividends to family members?
Under CRA's Tax on Split Income (TOSI) rules, dividends paid to family members who do not actively contribute to the business are taxed at the highest marginal rate. We ensure your distributions comply strictly with TOSI exclusions.
Let's discuss your bookkeeping & tax needs.
Tell us your entity type, tax years, and current accounting setup. Prepare a consultation inquiry or contact our certified bookkeeping team directly to discuss availability and engagement scope.
Direct Line: (873) 288-1923
Official Email: accounting@mlfinancials.ca
Practice Office: Suite 100, 310 Miwate Private, Ottawa, ON K1R 0E2
Before you send
Please provide a brief description of the bookkeeping or advisory assistance you need. Do not email SINs, passwords, banking credentials, or sensitive tax documents in your initial message.
Upon mutual agreement and engagement confirmation, we will provide a private, SOC-2 compliant client upload portal for secure document sharing.
Information on this website is general and is not individualized tax or legal advice. Engagements are subject to client acceptance, agreed scope of work, and applicable CPB Canada professional standards.