There are two ways independent contractors typically compensate themselves – dividends from the corporation or receiving a salary. The method you use is ultimately between you and your accountant, but if your business requires payroll, then don’t forget that you may need to update your payroll deductions on July 1st.
The 2016 Federal Budget announced earlier this year will have many implications to business, including some changes to payroll deductions. Here are a few resources to help you out:
- The CRA Payroll Deductions Online Calculator is a great start
- This post from Avanti Software summarizes changes for Canadian Payroll in 2016, federally and for each province
- Finally, the Canadian Payroll Association has many resources, articles and contacts that can help you keep current
Your accountant will also be your primary source of information on this topic. If you do have any specific questions, feel free to leave them in the comments below and we can help you find the answer.