If you’re considering paying yourself a year-end bonus or dividend, now is the time to plan carefully. In this quick-hit video, I explain how timing and proper documentation are critical for making the most of these payments. Whether your year-end is December 31st, or another month of the year, discuss your renumeration strategy with your financial advisors to ensure you are maximizing your tax situation.
Video Transcript:
You may be looking at paying yourself a year end bonus or a dividend.
I’m George Dube, Saving the world from tax one bow tie at a time®.
Dividend or bonus at year-end?
If you have an off-calendar year end, you’ve probably already taken care of your remuneration for the year when you were preparing the financial statements, tax returns, et cetera. But if you have a December 31st year end, or a late year end in the year, or financial circumstances have presented themselves that present an opportunity, you may look at adjusting what was previously done.
Reminder that remittance’s are due with a bonus
Remember, in order to get a bonus, for example, to be included in the current year’s income, the tax remittance must be made by January 15th of the following year at the latest. And if you’re an early remitter, it may be due even sooner.
Don’t forget your T4 or T5 slips
Remember as well to make everything official, you’ll need your T4 or T5 slips file for the end of February, and then everything’s in place and you’re ready for some more tax planning in the future.
Stay ahead with strategic planning
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Check out the next video in the series.
I want to help you Do wonderful things®.
-End transcript-
Resources
For additional resources related to the year-end tax savings, see:
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
