CPP/EI Deductions

Ok, so I own a business with two partners and we are incorporated. Should we be paying outselves for time worked, or should we be getting paid by a dividend through the company?

Also, since all 3 partners still has their normal job (in addition to the business), and is maxing out their CPP and EI insurnace, do you still have to deduct it from our pay? With the two jobs, it would definately us over the CPP and EI limits.

Please help, if you own an incorporated business.. how do you pay yourself??

Thanks,
Blunt

You would really need to speak to an accountant on this one, you need someone to review all the details and advise whether salary or dividends would best in your situation.

I will be speaking to an accountant soon...
can someone relate what they do in this situation?
I just want to get some idea.

As stated by Bullseye you really should speak to an accountant. There's not enough information to provide you with a reliable response. However, if you just want to get an idea then here's my take on it. If you pay yourself salary you will need to take into consideration your current salary so that you pay the appropriate amount of taxes. Paying yourself a salary will give you more RRSP room. If you take dividends, it's less admin work and it will not save you any money. Basically the amount of dividend you take will make up for your personal tax amount.

Hope that gives you the 'idea' you were looking for.

Sounds good.. thanxs.