bonus question

[Watching The World Burn]

Originally Posted by nazali

I decided not to pay myself a bonus, I have found an online calculator and I would pay (3 types of taxes on it) and as I'm also guestimating, I think when my CRA does the books, they'll sort it out. So I'll leave it

How old are you? Reason I ask, is if you are young, then do you believe CPP will be around when you retire? If so, then maxing out your CPP contributions via salary might be your best bet, and take the rest in dividends if any needed. CPP is a nice pension in that it gets annually adjusted, but it isn't a significant pension.

If you don't think it will be around, then no point contributing to it, dividends all the way, except maybe a small, say $5K salary, just so you are covered by CPP for disability.

Or if you are old, unlikely, then you would have to see what your CPP pension looks like now, if more or less maxed out, then switch to dividends as little point to continuing with CPP contributions. They have changed CPP a bit though, used to be you would max out after 39 years of full contributions, but that is no longer the case.

Good luck!