Salary or dividends: how each is paid, and what your books have to show
https://www.orbisaccounting.ca/guides/salary-vs-dividends-bc-owner/


Paying yourself a salary

Paying yourself dividends

Side by side

What the books have to show
[ ] The payroll register agrees with the T4 summary at year end
[ ] Payroll remittances are paid by their due dates and match the payroll register
[ ] Every dividend has a written resolution with the amount, the date and the shareholders
[ ] Dividends sit in equity as declared, not in expenses
[ ] The shareholder loan account is explained, and cleared on time where it has to be
[ ] Personal spending is not running through the company account

Orbis Accounting Ltd. · Checklist only. See the guide for context.