If your net taxes owing (excluding CPP
premiums) exceeded $3,000 in either of the past 2 years, and will exceed
$3,000 in the current year, you should be paying instalment payments to CRA for
the current year. Thus, you should plan
ahead so you will ensure you have funds available if instalment payments are
necessary. See the CRA information on paying
If your small business is incorporated, whether or not you
pay yourself a salary is a tax planning decision.
Another option is to pay yourself (and other shareholders,
depending on share structure) a dividend,
which is not deductible for the corporation. There are many factors
to consider, and professional advice in this area is recommended. If you
decide to pay yourself a salary, you will be required to deduct income tax and
CPP premiums from your salary, but as owner of the business you will not
be eligible to be covered by Employment Insurance. Depending on the province in which you operate, Workers'
Compensation premiums may be payable, even if you do not pay yourself a
See also EI for the self-employed.
Revised: October 23, 2013