Quote:
Originally Posted by Muffins
CPP yes, but EI no. Since he is paying himself he would be EI exempt.
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That's true. But many times I advise owner operator businesses the hazard of paying yourself salary in that you pay both the employer and employee portion of the CPP which amount to over $4000 a year.
If you know how to manage your money, a better return could be had investing the $4000 CPP premiums yourself than from CPP. Plus you have more flexibility of avoiding OAS/GIS clawback if you invest outside of CPP.