TTI develops Excel worksheets to help Canadian professionals solve tax challenges.

Please see our website, or contact us for more information. Were happ! to arrange a presentation or provide cloud access.
www.taxtemplates.ca " sales#taxtemplates.ca " $%&''%('$%&$()


Salary vs Dividend Worksheet

This worksheet pro*ects the tax outcomes of salar! vs dividend scenarios for Canadian corporations earning
active business income or +,P income.

-our clients situation.

Corporate inputs
o Tax province /0
o Tax !ear ending 1ec 2$, 3'$4
o Taxable income 5'','''
6ub*ect to 671 ('','''

8llocation inputs
o 8mount to allocate to individual $'','''
o Taxpa!er sub*ect to CPP -es
o Taxpa!er sub*ect to EI 0o
o Provincial health tax rate $.)(9

Personal inputs
o Tax !ear ending 1ec 2$, 3'$4
o Tax province /0
o Existing salar! from corporation $2','''
o Existing interest income $','''
o 8nnual :/I 2.''9

1etermine which method of allocating income from the corporation will provide !our client with the most after%
tax funds, the pro*ected amount, and the tax deferral available b! retaining funds in the corporation.

ON 100,000
Dec 31, 2014 -
Jan 1, 2014 -
600,000 Yes
500,000 No
100,000 No
500,000 1.95%
100,000 130,000
100,000 - 50,000
- - -
- - -
- - -
(1,913) - (956)
- - -
98,087 - 49,044
- 100,000 50,000
- - -
- - -
- (15,000) (7,500)
- - -
- (11,500) (5,750)
- - -
- 73,500 36,750
- - -
- - -
(28,445) (14,209) (21,327)
(18,883) (9,492) (14,187)
- - -
- - -
(47,328) (23,701) (35,515)
50,759 49,799 50,279
(960) (480)
22,741 11,665
3.00%
Taxpae! s"#$ec% %o &''
(To%a( pe!sona( %axes ) &'' ) *+)
Taxpae! s"#$ec% %o *+
Te,p(a%e s"ppo!%
Tax ea! en-.n/
Tax ea! s%a!%.n/
0((oca%e- as -.1.-en-
(O%2e! co!po!a%e %axes)
(&'' pa.- pe!sona(()
(3oc.a( #ene4.%s !epa,en%)
O%2e! a-$"s%,en%
'!epa!e- Oc% 1, 2014
5e1.e6e-
0pp!o1e-
0n-!e6
7a!/.na( sa(a! expenses
3a(a! pa.-, ne% o4 ,a!/.na( a,o"n%s
8!ea9e1en pe!.o- on -e4e!!e- %ax a,o"n%s
3a(a! on( D.1.-en- on( 3a(a! ) -.1.-en- ,.x
(*+ pa.- pe!sona(()
(:e-e!a( pe!sona( %axes)
(ON pe!sona( %axes)
Ne% a,o"n% !ece.1e-
Tax sa1.n/s (cos%) 1s. sa(a!
3",,a!
3"#$ec% %o ON 38D !a%e
Tax p!o1.nce
(7a!/.na( sa(a! expenses)
7!. 0
3a(a! 1s. D.1.-en- ;o!9s2ee%
'!epa!e- on Oc%o#e! 1, 2014
Taxa#(e .nco,e
0,o"n% %o a((oca%e %o .n-.1.-"a(
7a!/.na( -.1.-en- expenses
(O%2e! sa(a! %axes)
No%es
(:e-e!a( <ene!a( !a%e - 15.0%)
(ON <ene!a( !a%e - 11.5%)
3"#$ec% %o ON <ene!a( !a%e
3"#$ec% %o :e-e!a( 38D !a%e
Tax -e4e!!a( a1a.(a#(e
8!ea9e1en .n1es%,en% pe!.o-
D.1.-en-s pa.-, ne% o4 ,a!/.na( a,o"n%s
(7a!/.na( -.1.-en- expenses)
(ON 38D !a%e - 4.5%)
3"#$ec% %o :e-e!a( <ene!a( !a%e
(*+ pa.- # co!po!a%.on)
(:e-e!a( 38D !a%e - 11.0%)
('!o1.nc.a( 2ea(%2 %ax)
0((oca%.on an- !e(a%e- a,o"n%s
'!o1.nc.a( 2ea(%2 %ax !a%e (%)
(&'' pa.- # co!po!a%.on)
0((oca%e- as sa(a!
&o!po!a%e .np"%s
No%es
No%es
*+ paa#(e # co!po!a%.on
*x.s%.n/ sa(a! 4!o, co!po!a%.on
1 ea!(s) 4 ,on%2(s) 1 ea!(s) 4 ,on%2(s)
Tax Te,p(a%es +nc.
2014-10-27
13=13
Te,p(a%e s"ppo!%
'!epa!e- Oc% 1, 2014
5e1.e6e-
0pp!o1e-
0n-!e6 7!. 0
3a(a! 1s. D.1.-en- ;o!9s2ee%
'!epa!e- on Oc%o#e! 1, 2014
ON ON ON
Dec 31, 2014 Dec 31, 2014 Dec 31, 2014
130,000 130,000 130,000
- - -
- - -
- - -
- - -
- - -
- - -
10,000 10,000 10,000
- - -
- - -
- - -
- - -
140,000 140,000 140,000
- - -
- - -
- - -
- - -
140,000 140,000 140,000
- - -
140,000 140,000 140,000
Yes Yes Yes
2,426 2,426 2,426
- - -
No No No
- - -
- - -
- - -
- - -
- - -
- - -
Desc!.p%.on
&a(c"(a%e *+
O(- 0/e 3ec"!.%
Na,e
&a(c"(a%.on 1 - *x.s%.n/ a,o"n%s
*(./.#(e -.1.-en-s
Tax ea! en-.n/
Tax p!o1.nce
7!. 0
*(./.#(e pens.on
<!oss-"p
Ne% .nco,e ((oss)
&'' c!e-.% - #"s.ness
(Non-%axa#(e po!%.on)
&'' c!e-.% - e,p(o,en%
O%2e! 4e-e!a( c!e-.%s - c!e-.% !a%e
(O%2e! -e-"c%.ons)
O%2e! %2an e(./.#(e -.1.-en-s
<!oss-"p
Ne% cap.%a( /a.ns
O%2e! .nco,e
Ne% #"s.ness .nco,e ((oss)
To%a( .nco,e ((oss)
(&'' on #"s.ness)
(3oc.a( #ene4.%s !epa,en%)
*,p(o,en%
(553' -e-"c%.on)
Taxa#(e .nco,e ((oss)
*+ c!e-.% - e,p(o,en%
(O%2e! -e-"c%.ons)
*(./.#(e -ona%.ons ,a-e - 75% (.,.%
*(./.#(e -ona%.ons ,a-e - no (.,.%
*x.s%.n/ a,o"n%s
O%2e! p!o1.nc.a( c!e-.%s - c!e-.% !a%e
&a(c"(a%e &''
+n%e!es% an- o%2e! .n1es%,en%
*x.s%.n/ a,o"n%s
3a(a! on(
&a(c"(a%.on 3 - *x.s%.n/ a,o"n%s
7!. 0
3a(a! an- -.1.-en-s
*x.s%.n/ a,o"n%s
&a(c"(a%.on 2 - *x.s%.n/ a,o"n%s
7!. 0
D.1.-en-s on(
*+ c!e-.% - #"s.ness
Tax Te,p(a%es +nc.
2014-10-27
13=13
Te,p(a%e s"ppo!%
'!epa!e- Oc% 1, 2014
5e1.e6e-
0pp!o1e-
0n-!e6 7!. 0
3a(a! 1s. D.1.-en- ;o!9s2ee%
'!epa!e- on Oc%o#e! 1, 2014
ON ON ON
Dec 31, 2014 Dec 31, 2014 Dec 31, 2014
98,087 - 49,044
- 1,500 750
- 270 135
- 72,000 36,000
- 27,360 13,680
98,087 101,130 99,609
- - -
- - -
- - -
- - -
98,087 101,130 99,609
- - -
98,087 101,130 99,609
Yes Yes Yes
- - -
- - -
No No No
- - -
- - -
- - -
- - -
- - -
- - -
(553' -e-"c%.on)
<!oss-"p
(O%2e! -e-"c%.ons)
(3oc.a( #ene4.%s !epa,en%)
(&'' on #"s.ness)
Ne% .nco,e ((oss)
(O%2e! -e-"c%.ons)
*(./.#(e -ona%.ons ,a-e - 75% (.,.%
O%2e! 4e-e!a( c!e-.%s - c!e-.% !a%e
&a(c"(a%e &''
&a(c"(a%e *+
Taxa#(e .nco,e ((oss)
O%2e! %2an e(./.#(e -.1.-en-s
&'' c!e-.% - e,p(o,en%
O%2e! p!o1.nc.a( c!e-.%s - c!e-.% !a%e
*(./.#(e -ona%.ons ,a-e - no (.,.%
&'' c!e-.% - #"s.ness
*+ c!e-.% - e,p(o,en%
*,p(o,en%
To%a( .nco,e ((oss)
&a(c"(a%.on 1 - 7a!/.na( a,o"n%s
*(./.#(e -.1.-en-s
<!oss-"p
7a!/.na( a,o"n%s 7a!/.na( a,o"n%s 7a!/.na( a,o"n%s
Tax ea! en-.n/
&a(c"(a%.on 2 - 7a!/.na( a,o"n%s &a(c"(a%.on 3 - 7a!/.na( a,o"n%s
Na,e 7!. 0 7!. 0 7!. 0
Desc!.p%.on 3a(a! on( D.1.-en-s on( 3a(a! an- -.1.-en-s
*+ c!e-.% - #"s.ness
Tax p!o1.nce
Tax Te,p(a%es +nc.
2014-10-27
13=13
Te,p(a%e s"ppo!%
'!epa!e- Oc% 1, 2014
5e1.e6e-
0pp!o1e-
0n-!e6 7!. 0
3a(a! 1s. D.1.-en- ;o!9s2ee%
'!epa!e- on Oc%o#e! 1, 2014
D.!ec% %o s2a!e2o(-e! D.!ec% %o s2a!e2o(-e! D.!ec% %o s2a!e2o(-e!
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
98,087 29.00% 28,445 101,130 29.00% 29,328 99,609 29.00% 28,887
- - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - -
- - - (1,770) 11.02% (195) (885) 11.02% (97)
- - - (99,360) 15.02% (14,924) (49,680) 15.02% (7,462)
- - -
- - -
28,445 14,209 21,327
- - - - - - - - -
- - - - - - - - -
10,000 11.16% 1,116 10,000 11.16% 1,116 10,000 11.16% 1,116
70,000 12.16% 8,512 70,000 12.16% 8,512 70,000 12.16% 8,512
18,087 13.16% 2,380 21,130 13.16% 2,781 19,609 13.16% 2,580
- - - - - - - - -
0 0 0
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - -
- - - (1,770) 4.50% (80) (885) 4.50% (40)
- - - (99,360) 10.00% (9,936) (49,680) 10.00% (4,968)
- - -
- - -
6,725 6,949 6,837
- - -
150 150 150
18,883 9,492 14,187
8!ac9e% 3
(D.1.-en- c!e-.% - o%2e!)
(>n"se- c!e-.%s 4!o, ex.s%.n/ .nco,e)
8!ac9e% 2
(D.1.-en- c!e-.% - e(./.#(e)
7a!/.na( 4e-e!a( %axes
O%2e! a-$"s%,en%
Tax 0,o"n%
'!o1.nc.a(
(&'' c!e-.% - #"s.ness)
8!ac9e% 4
8!ac9e% 5
(O%2e! p!o1.nc.a( c!e-.%s - c!e-.% !a%e)
(&'' c!e-.% - e,p(o,en%)
8!ac9e% 3
('e!sona( a,o"n%)
8!ac9e% 1
(*+ c!e-.% - #"s.ness)
(*+ c!e-.% - #"s.ness)
5a%e
:e-e!a(
0,o"n%
O%2e! a-$"s%,en%
0(%e!na%.1e ,.n.,", %ax
(&'' c!e-.% - e,p(o,en%)
(*+ c!e-.% - e,p(o,en%)
(Dona%.ons an- /.4%s)
(O%2e! 4e-e!a( c!e-.%s - c!e-.% !a%e)
0(%e!na%.1e ,.n.,", %ax
8!ac9e% 2
8!ac9e% 4
('e!sona( a,o"n%)
(D.1.-en- c!e-.% - o%2e!)
5a%e
8!ac9e% 6
8!ac9e% 1
(&'' c!e-.% - #"s.ness)
(*+ c!e-.% - e,p(o,en%)
(&ana-a e,p(o,en% a,o"n%)
7a!/.na( p!o1.nc.a( %axes
(>n"se- c!e-.%s 4!o, ex.s%.n/ .nco,e)
(D.1.-en- c!e-.% - e(./.#(e)
(Dona%.ons an- /.4%s)
3"!%axes
Tax !e-"c%.on
?ea(%2 %ax
Tax
7a!/.na( %ax ca(c"(a%.ons 4o! 7!. 0
0,o"n% 5a%e Tax
7a!/.na( %ax ca(c"(a%.ons 4o! 7!. 0
:e-e!a(
0,o"n% 5a%e Tax
'!o1.nc.a(
0,o"n% 5a%e Tax
'!o1.nc.a(
0,o"n% 5a%e Tax
7a!/.na( %ax ca(c"(a%.ons 4o! 7!. 0
:e-e!a(
Tax Te,p(a%es +nc.
2014-10-27
13=13

3a(a! on( D.1.-en-s on( 3a(a! an- -.1.-en-s
100,000 - 50,000
- 100,000 50,000
1,913 - 956
- 26,500 13,250
47,328 23,701 35,515
50,759 49,799 50,279
(960) (480)
22,741 11,665
1 ea!(s) 4 ,on%2(s) 1 ea!(s) 4 ,on%2(s) 8!ea9e1en .n1es%,en% pe!.o- @ 3.00%
3a(a! 1s. D.1.-en- ;o!9s2ee% - Ne% &as2 01a.(a#(e
7!. 0 - '!epa!e- on Oc%o#e! 1, 2014
A &a(c"(a%e &''= Yes, &a(c"(a%e *+= No, *?T !a%e= 1.95%
AA Tax p!o1.nce= ON, Tax ea!= Jan 1, 2014 %o Dec 31, 2014,
Taxa#(e .nco,e= 600,000 (500,000 a% :e-e!a( 38D !a%e ) 500,000
a% ON 38D !a%e)
AAA Tax p!o1.nce= ON, Tax ea! en-.n/= Dec 31, 2014, *x.s%.n/
%axa#(e .nco,e= 140,000
3a(a!
D.1.-en-
Bess= &'' ) *+ ) ?ea(%2 A
Bess= &o!po!a%e %axes an- expenses AA
Bess= 'e!sona( %axes AAA
Ne% cas2
'e!sona( %ax -e4e!!e- .4 -.1.-en-s no% pa.-
Tax sa1.n/s (cos%) 1s. sa(a!
-
20,000
40,000
60,000
80,000
100,000
120,000
3a(a! on( D.1.-en-s on( 3a(a! an- -.1.-en-s
Tax Te,p(a%es +nc.
2014-10-27
13=13