Small business owners need to understand how paying themselves with dividends and salary can impact their earning potential. In Canada, these are common payment methods with different tax implications. This post explores the differences, including taxation rates and personal retirement accounts (RRSP and CPP program), to help you make an informed decision. Gain a clear understanding of dividends vs salary and make a plan that maximizes your earnings. Overview of Dividends and Salaries Dividends and salaries are two important components of compensation for owners of a small business corporation in Canada. Dividends are payments made to shareholders as a share of [...]