Salary or Dividends which is better? We look at the difference between paying yourself a salary or paying yourself dividends.

We discuss the main advantages and disadvantages of each and look at some common scenarios for when a business owner may choose one method over the other.

Questions answered in this video include:
► What's the difference between paying yourself a salary vs paying dividends?
► Why would a salary be better than dividends?
► When are dividends better than salary?
► How to pay yourself a salary
► How to pay yourself dividends
► Will I pay less taxes using salary or dividends?
► How to compare taxes owing from salary and dividends

******************************

✅ Sign up for my newsletter here: https://www.avalonaccounting.ca/weekl...

******************************

CONTENTS OF THIS VIDEO

00:00 Intro
00:31 Paying Yourself a Salary
00:55 How Paying Yourself a Salary Works
01:17 Why Choose Salary
01:26 Salary Builds RRSP Contribution Room
01:49 Salary Helps Avoid Surprise Tax Bills
02:34 You Contribute to CPP with Salary
03:18 Salary Helps Qualify for a Mortgage
03:38 Salary Can Help Qualify for Subsidies and Tax Credits
04:15 How to Pay Yourself a Salary
05:04 Paying Yourself Dividends
05:13 How Dividends Work
05:44 Why Choose Dividends
05:50 Dividends Remove CPP Costs
06:31 Paying Dividends is Simple
06:57 Dividends Reduce Chances of CRA Penalties
07:30 Dividends Can Decrease Employer Health Tax Costs
08:07 How to Pay Yourself Dividends
09:17 Salary vs Dividends How They're Taxed
10:11 Salary vs Dividends Which Creates Less Tax?
10:50 Salary vs Dividends Tax Comparisons
11:14 Salary vs Dividends Tax Comparison Example 1
12:26 Salary vs Dividends Tax Comparison Example 2
13:46 Salary vs Dividends Summary of Factors to Consider
14:14 Final Thoughts

******************************

MENTIONED IN THIS VIDEO

► Salary vs Dividends Blog Article
https://www.avalonaccounting.ca/blog/...

► How to Run Payroll in Canada: a Stepbystep Guide
https://www.avalonaccounting.ca/blog/...

► How Employer Health Tax Works
https://www.avalonaccounting.ca/blog/...

► Corporate Share Structure Considerations for Canadian Businesses
https://www.avalonaccounting.ca/blog/...

► Tax on Split Income (TOSI) Tax Changes 2018
https://www.avalonaccounting.ca/blog/...

► Wealthsimple Tax Calculator
https://www.wealthsimple.com/enca/to...

► Corporate Tax Rates in Canada
https://www.avalonaccounting.ca/blog/...

******************************

AVALON ACCOUNTING

Avalon is a virtual accounting firm located in Canada. We aim to be THE online accounting department for small businesses in Canada.

We provide online bookkeeping, accounting services and expert financial advice for small businesses.

We are on a mission to educate small business owners through our YouTube channel, blog and free resources. Check out our links below to dive in.

******************************

CONNECT

► Website: https://www.avalonaccounting.ca/
► Blog: https://www.avalonaccounting.ca/blog
► Facebook:   / avalonaccoun.  .
► Instagram:   / avaloncpa  
► LinkedIn:   / avalonaccounting  

******************************

‍ ONLINE COURSES
► Take your business to the next level with our online courses.
https://www.avalonaccounting.ca/courses

ESSENTIAL FINANCIAL CONCEPTS FOR SMALL BUSINESSES (FREE COURSE)
► Keys to building a business that provides owners with time, money and purpose.
https://www.avalonaccounting.ca/cours...

LEARN MODERN BOOKKEEPING
► Learn to do your own bookkeeping with modern tools and our proven practices.
https://www.avalonaccounting.ca/cours...

BOOKKEEPING AND TAX FOR FREELANCERS
► This course teaches sole proprietors how to simplify bookkeeping and taxes.
https://www.avalonaccounting.ca/cours...

******************************

FLOAT VISA $500 CASH BACK

Float Financial provides a company credit card built for modern businesses.

Check out our review for details

► https://www.avalonaccounting.ca/blog/...

Use our referral link to receive $500 cash back

► https://tinyurl.com/floatvisa

We may receive compensation when our link is used to sign up for a Float Visa.

******************************

20% OFF INCORPORATION WITH OWNR

If you are looking to incorporate (in Canada) and want to save some cash, check out Ownr with our affiliate link for 20% off incorporation costs:

► https://www.ownr.co/partners/avalona...

We may receive compensation when our link is used to sign up with OWNR