1 Advice for businesses
Nobody likes to pay too much tax. Luckily, there are a number of
tax-saving measures that can help with just that—both for
businesses and individuals. But, in order to capitalize on these
opportunities, now's the time to review your 2015 tax situation
to see if any apply to you.
Salary, bonus or dividends? What's the right compensation
strategy for you?
If you're the owner-manager of a closely held
Canadian-controlled private corporation (CCPC), you should consider
the mix of salary, bonus and dividends in your compensation
package. A bonus is often preferred over salary, since the payment
can be deferred until after the company's year-end.
Salary and bonus are both considered earned income which is used
to calculate your RRSP contribution limit for the subsequent year.
For 2015, you will need earned income of $140,945 to make the
maximum RRSP contribution for the 2016 tax year of $25,370.
