What are the corporate inputs for the Salary vs. Dividend Worksheet?

Jay Goodis -

The following are the corporate inputs:

  • The province and tax year are used to determine the corporate income tax rates
  • The taxable income is used to allocate corporate income to the correct tax rate
  • If your client earned its active business income from M&P activities, please change the title from “Active business income” to “M&P active business income”
  • The amount to allocate to individual is the amount that is to be paid from the corporation (by salary, dividend, or a mix of both)
  • The “Marginal dividend expenses” & “Marginal salary expenses” allow marginal expenses of a salary (i.e. payroll filing fee) or dividend strategy (i.e. legal resolutions) to be considered
  • If CPP or EI withholdings are required to be withheld as a component of salary, select “yes” in the appropriate section
  • The “Provincial health tax rate” is the percentage of salary payable by the corporation (when applicable)
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