As a corporation, how does our low salary and high dividend influence our ability to collect CPP?
Allan Madan, CA
The CPP Retirement Fund is based on how much and for how long you contribute to the pension plan. When you pay yourself a low salary and a high dividend, it reduces the CPP payout when you retire.
However, you will still be entitled to CPP benefits based on the CPP contributions you have made to date. As a corporation, you will have to pay CPP twice; once as an employer and once as an employee.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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