Salary vs Dividend Calculator
Compare after-tax cash and plan CPP/RRSP implications.
Open Calculator →Taxes: Corporate & Personal
Plan your owner pay, avoid year-end surprises, and keep CRA happy. This hub links the practical tools you need for salary vs dividend, set-asides, home office, and asset claims (CCA) — built for Canadian small business.
Owner Pay
Tax Set-Asides
Home Office
CCA / Assets
Year-End
Records
What You’ll Decide & Set Up
- Choose an owner-pay mix (salary vs dividend) that fits cash + CPP/RRQ + RRSP room
- Automate tax set-asides for corporate & personal taxes
- Capture allowable home office and vehicle costs properly
- Plan CCA (classes, rates, half-year rules, accelerated claims)
- Run a clean year-end with reconciliations and documents ready
Keep it practical: simple rules, monthly routines, and a short year-end checklist.
Quick Reference
| Area | Best First Step |
|---|---|
| Owner Pay | Run the Salary vs Dividend calculator using realistic profit. |
| Set-Asides | Use the Tax Set-Aside estimator; move funds weekly. |
| Home Office | Complete the Home Office calculator; document footage & bills. |
| CCA | List assets by class; plan purchases vs claims with the CCA helper. |
| Year-End | Follow the Year-End Tax checklist; prepare dividend minute if needed. |
Calculators & Templates
Tax Set-Aside Estimator
Plan monthly reserves for corp & personal taxes.
Estimate Now →Home Office Expense Calculator
Reasonable B.U.H. allocation with clear documentation.
Calculate →CCA / Capital Asset Helper
Classes, rates, half-year rules, and claim planning.
Plan CCA →Year-End Tax Checklist
Everything to gather for smooth filings.
Download →Dividend Minute Template
Board resolution for declaring dividends.
Download →Shareholder Loan Tracker
Track additions, repayments, and year-end positions.
Download →Pricing & Break-Even
Check margins to ensure price supports tax & cash goals.
Open →Some items are member-only. Join SBN Pro for instant access.
Owner Pay Plan in 5 Steps
1) Forecast Profit & Cash
- Use the Cash Flow Planner + your P&L to set a baseline
- Identify lean months that constrain payouts
2) Model Salary vs Dividend
- Test a salary that builds CPP/RRSP room
- Top up with dividends when cash allows
3) Lock Set-Asides
- Automate weekly transfers for corp/personal taxes
- Keep a separate savings account for taxes
4) Document Decisions
- Save payroll schedules and dividend minutes
- Update personal installment reminders
5) Review Quarterly
- Compare actuals vs forecast; adjust mix if needed
- Check CCA plans before major purchases
Pro Tip: Treat owner pay as a policy, not a whim. Small, predictable salary + dividend top-ups beats feast-or-famine.
Common Problems & Fast Fixes
“Surprised by a big tax bill.”
Turn on weekly set-asides; add quarterly personal installments to your calendar.
“Home office claim got messy.”
Re-calculate with the Home Office tool; keep utility/insurance docs and floorplan notes.
“Unsure when to claim CCA.”
Use the CCA helper; compare cash tax savings vs keeping income for borrowing capacity.
“Shareholder loan drift.”
Start the loan tracker; set rules for reimbursements/dividends to avoid year-end surprises.
FAQs
What’s the “right” salary vs dividend split?
There isn’t one. Balance cash needs, CPP/RRSP room, and admin simplicity; adjust as profits change.
Should I make quarterly installments?
If required or if it avoids interest — yes. Budget for them in the Cash Flow Planner.
Can I claim home internet/phone?
Often partially. Document business use and keep bills. Use the calculator to cap claims reasonably.
Related Guides
Cash Flow & Money Management
Tie owner pay and taxes to weekly cash routines.
Open Guide →Bookkeeping & Accounting Basics
Clean records = painless tax filings.
Open Guide →GST/HST & CRA Compliance
Coordinate ITCs and filings with year-end planning.
Open Guide →Make Taxes Predictable
Join Small Business Navigator to unlock calculators, templates, and step-by-step walkthroughs for confident tax planning.
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