COMMERCE 4SC3 Lecture Notes - Lecture 3: Payroll Tax, Pension, Income Tax
27 Sep 2018
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Document Summary
Whether you earn it as a salary or as dividend. If corporate tax rate is less than the theoretical rate then you should take dividends in the company. This bias is overruled by canadian pension plan. Cpp - half is paid by worker and half by employer. Most clients create room because they are self employer or employee. If remove money out of company as dividend yo udont make rrsp room because it is not income earned. If you make a salary then you can put money in. Determines whether or not to pay yourself in dividend or salary. Money company spends is your money to fund thinks like ayroll taxes. Employer health tax is levied on companies that have payroll over ,000. So you could rather take out a large sum through dividends. Section 15(1) - steal money from company rather take out a large sum through dividends. Stealing money is bad if you get caught by revenue canada.
