Trusted Tips and Resources

Trusted Tips & Resources

Trusted Saskatoon Celebrates Partners Who Have Been Trusted in Saskatoon For 5 Over Years

TRUSTED SASKATOON RECOGNIZES OUR PARTNERS WHO HAVE BEEN TRUSTED FOR 5 YEARS!

In this series of articles, we continue to shine a bright spotlight on the businesses that have been Trusted Saskatoon partners for five years. This year, we recognize the Trusted Saskatoon Partners that joined us in 2018. We want to thank them for TRUSTING our team, and we are identifying each of them individually for providing five years of OUTSTANDING, trustworthy service to the citizens of Saskatoon and the surrounding area! The latest article celebrates and recognizes three valued milestone Trusted Saskatoon partners - 101 Doors and Windows Inc., Wiegers Financial & Benefits and HTH Accountants.


101 Door and Windows: Trusted Saskatoon Window & Door Pros for five years.

101 Doors and Windows Ltd: Celebrating 5 Years of Trusted Service in Window and Door Manufacturing and Installation in Saskatoon. 

In the heart of 'Toon Town,' a local success story has quietly made waves in the window and door industry. 101 Doors and Windows Ltd, owned by Jesse Singh, Tom Knudtson, and Sebastian Aicher, is marking a significant milestone as it celebrates its 5th anniversary as a Trusted Saskatoon window and door partner.

At the core of 101 Doors and Windows Ltd's ethos lies a simple yet powerful belief: relationships matter. Since their inception, the company has held this principle close to heart. The founders have adeptly cultivated meaningful relationships with their suppliers, resulting in a "preferred client" status with many. This translates into robust buying power and ensures their clients benefit from superior service and top-quality materials.

Industry knowledge and experience are the cornerstones on which 101 Doors and Windows Ltd stands. Jesse, Tom, and Sebastian collectively bring decades of experience. They go beyond being a mere service provider; they encourage potential clients to reach out with any queries regarding window and door performance, installation techniques, or design advice tailored to their homes. Their dedication to personalized support sets them apart in an industry where one-size-fits-all solutions often prevail.

What They Say:

"Our goal at 101 is very simple. We want to run a successful enterprise and think it takes great people, products, knowledge and experience to do that—the right kind of people. We hire for attitude and work ethic. Product knowledge and skills can be taught. Attitude and work ethic can't. We believe if we take good care of our employees, they will take good care of our customers. We are continuously working to find the best products and are always adding to our knowledge and experience. We appreciate the Trusted Saskatoon team’s support and promotion, and we are proud to be part of community of locally owned businesses that is built on a foundation of integrity — Tom Knudtson

A word about 101 from Sara, owner of Trusted Saskatoon

I couldn't be happier to sing the praises of 101 Doors and Windows. They embody everything you'd want in a contracting company. First and foremost, their commitment to manufacturing locally sets them apart. In an age when so much is outsourced, it's refreshing to find a company that takes pride in crafting their products right here in Saskatoon. Their reputation in the construction industry is nothing short of stellar. They are a preferred client with their suppliers for a reason. They remain humble and approachable and they're always ready to answer questions and offer advice. 101 Doors and Window is  a breath of fresh air. They are a company that lets their work speak for itself!”  

As we mark their 5th anniversary as Trusted Saskatoon Window & Door Pros, they can celebrate that we have never heard of or received a complaint about their products or service! Here's to five years of a successful partnership and the many more ahead.Thank you to the 101 Doors and Windows team for your trust and embodying what it means to be an integrity-driven local contractor and an outstanding, Trusted Saskatoon Partner in the window & door category.

The Trusted Saskatoon team proudly recognizes & celebrates Wiegers Financial & Benefits' 5th anniversary as a Trusted Saskatoon Partner. 

The dynamic duo Deb and Cliff Wiegers founded the company more than 30 years ago, and this award-winning, locally-owned family business stands as a beacon of trustworthiness and excellence in the Saskatchewan financial planning and employee group benefits industry. Anchored by their vision, the Wiegers lead a dedicated team of professionals driven by passion and care, all united by a common goal – to provide tailor-made financial and benefit solutions that empower businesses, households, and individuals to thrive in the present and future.

At the heart of Wiegers Financial & Benefits lies a commitment to delivering more than just financial services; they craft personalized journeys toward prosperity. This mission is deeply embedded in their work philosophy, where understanding clients on a profound level forms the cornerstone. The Wiegers team delves into their clients' aspirations, goals, and dreams by forging close partnerships. This holistic comprehension enables them to offer financial planning and employee benefits solutions that are not just transactional but transformative.

The Wiegers legacy expands to encompass the next generation – Colton and Randi Wiegers now work in the family business and are committed to continuing the family's dedication to service excellence. 

The Wiegers Financial & Benefits team is deeply rooted in Saskatchewan and is dedicated to strengthening the local community. They support an impressive number of important causes and non-profits and have a particular focus on supporting local children's charities through their charity, Care for Kids by Wiegers Inc. Since 2009, they've raised over $1.3 million for the Jim Pattison Children's Hospital Foundation, funding a pediatric surgical suite and outpatient area. The Wiegers's commitment to our community remains unwavering. Whether it's causes close to their heart, businesses striving to expand, households securing their future, or individuals chasing their dreams, the Wiegers team takes the journey together, equipped with expertise and empathy.

What They Say:


“ Being trusted is of the utmost importance to us. We work in an industry where trust is the foundation of success; to serve our clients effectively, they must trust us enough to share openly with us, including about issues that might be very private and sensitive. They must also be able to trust that we will guide them on the path to financial well-being and that their businesses and families will be looked after, too. This is why we are so proud to be a Trusted Saskatoon partner. Trusted Saskatoon is a highly respected local business committed to recommending other businesses of the highest integrity and ability. Their endorsement means a lot, and we look forward to continuing to earn it for years to come.” - Deb Wiegers

A word about Wiegers from Sara, owner of Trusted Saskatoon.

"I've been a client of Wiegers Financial & Benefits for several years, and I appreciate them managing my company's group benefits. I am confident my employees are receiving the best coverage and support. We especially appreciate the personal level of service Deb Wiegers and the group benefits division offer, and the Wiegers Wellness Partner Program is a great perk! 
On a personal level, Cliff Wiegers and the financial services team have helped me navigate my financial goals with precision and care. From retirement planning to investment strategies, their guidance has given me confidence in my financial future. The team at Wiegers is not just a service provider; they are Trusted Partners who genuinely care about their clients. Their attention to detail, proactive communication, and commitment to finding tailored solutions make them stand out. I highly recommend Wiegers Financial & Benefits to anyone seeking top-notch financial and benefits management. They have made a significant positive impact on both my business and personal financial well-being.”
As they reach the milestone of 5 years as Trusted Saskatoon Partners, Wiegers Financial & Benefits stands as a testament to what can be achieved through vision, integrity, philanthropy and an unwavering dedication to client success. The Wiegers team is not merely in the business of finance and benefits; they are in the business of transformation, growth, community support and a brighter future for all they serve.

Thank you, Cliff & Deb, for your trust and for showcasing that you are an integrity-driven local business and an outstanding, Trusted Saskatoon Partner in the Saskatoon financial services and Insurance categories. 



In a world where financial trust is paramount, HTH Chartered Professional Accountants leads the way. HTH stands for Hounjet, Tastad, and Harpham and is led by the founding partners Roseline Hounjet, Allyn Tastad, and Dustin Harpham. More recently, Hope Fremont and Hanny Cooper were announced as partners. Roseline Hounjet, a founding partner who contributed significantly to their success, announced her retirement, marking a significant milestone in the firm's journey.

HTH Chartered Professional Accountants has mastered the art of building trust. With many decades of experience under their belts, the team at HTH understands that public practice accounting is not just about numbers; it's about fostering relationships based on trust and understanding. One of the cornerstones of HTH's approach is taking the time to comprehend and reach the client's needs and goals. Whether you're seeking assistance with personal tax matters, a small or medium-sized business owner navigating complex financial landscapes, or a not-for-profit organization seeking financial guidance, HTH offers the same unwavering commitment to providing high-quality service tailored to your needs.

While HTH Chartered Professional Accountants is based in Saskatoon, they serve individuals and businesses across the prairies; they've garnered a reputation for delivering consistent excellence in the accounting field. No matter where their clients are located, HTH is dedicated to ensuring that each interaction is marked by professionalism, reliability, and trustworthiness.

What They Say:


“We are proud to be one of the partners at Trusted Saskatoon for the last five years. To us, being ‘trusted’ holds a significant importance – it means we are trusted by our clients and the community to provide quality service and we are able to maintain that trusting relationship that keeps our clients coming back year after year. This helps them to refer their friends and family to us and know that they are in good hands. We appreciate all the support we’ve received from Trusted Saskatoon over the last five years, and we look forward to continuing to build our relationship within our community.” - Hanny Cooper, HTH

Sara's Experience with HTH 


“ As a client of HTH Chartered Professional Accountants since I moved to Canada in 2006, I can attest that HTH is more than just an accounting firm; they are a comprehensive business resource. Their level of care, commitment, knowledge, and experience, coupled with a dedication to understanding their clients' needs, allow them to provide invaluable support. I am extremely grateful for their wonderful support and assistance for both my personal and business accounts." 

As HTH Chartered Professional Accountants in Saskatoon celebrates its 5th anniversary as a Trusted Saskatoon Accountant, their commitment to building trust, understanding client's needs, and delivering high-quality service remains unwavering. In a world where financial guidance is essential, HTH stands as a shining example of trust and reliability, ready to guide individuals and businesses toward financial success for years to come.


Trustedsaskatoon.com will save you time, save you hassle and save you money. Our local Trusted Saskatoon team is committed to finding outstanding businesses like the Partners we have highlighted above. Be assured ALL the companies featured on our Saskatoon directory have been checked and verified,  and in addition, they are annually contracted to uphold the 5 TRUSTED GUARANTEES of service! 

5 Trusted Guarantees

  1. Provide the service and quality promised.

  2. Complete the job on time.

  3. Charge the price quoted with NO surprises.

  4. Communicate honestly and be responsive to customer needs.

  5. Resolve any issues with customer satisfaction in mind.


Trusted Saskatoon was founded on the principle that great local businesses deserve promotion. 

Please help us by nominating your favourite Saskatoon businesses here.

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Discuss US Residency Rules for 'Snowbirds'

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. 


WHY IT’S IMPORTANT THAT SNOWBIRDS UNDERSTAND U.S. RESIDENCY RULES BEFORE PLANNING THEIR TRIP


Every year, over 1 million Canadian seniors and retirees pack up and move south for the winter to enjoy the warm weather and avoid the freezing temperatures at home.

However, while warmer climates can be a welcome escape, Canadian snowbirds need to be very careful about how much time they spend in the United States, as overstaying can result in being deemed a U.S. resident for tax purposes and subject you to paying taxes in the United States even if you’re not a U.S. citizen.

The good news is that proper planning and awareness of the correct U.S. residency rules can help you avoid falling into the snowbird tax trap.

NOTE: If you have dual Canadian – U.S. citizenship, you should already be filing a U.S. tax return to report your worldwide income, no matter how much or little time you spend in the U.S., so the options below won’t apply to you.


The Wrong Way to Avoid Being Considered a U.S. Resident

Unfortunately, many Canadian snowbirds have been misinformed that if they simply spend fewer than 183 days in the U.S. in any given year, they will not be considered U.S. residents for tax purposes.

This information is not true, and has caused thousands of Canadians to unknowingly violate U.S. residency rules, often leading to serious financial and emotional stress.

Don’t think you’ll just slip through the cracks. Canadian and U.S. border officials are sharing more information than ever, making it virtually impossible to hide from the IRS.

 

The Right Way to Avoid Being Considered a U.S. Resident

Canadian snowbirds have three options to avoid being considered U.S. residents for tax purposes by the IRS. The first option is to avoid being considered a U.S. resident for tax purposes in the first place, while the second and third options offer exemptions if you could be considered a U.S. resident.

The three options below are listed from simplest to most complex. The right option for you will depend on your unique situation:

  1. The Substantial Presence Test
  2. The Closer Connection Exemption
  3. The Canada – U.S. Tax Treaty

Option 1: The Substantial Presence Test

The easiest way for Canadian snowbirds to avoid being considered U.S. residents for tax purposes is to make sure you don’t meet the IRS’s Substantial Presence Test. Under the Substantial Presence Test, the IRS considers Canadians to be U.S. residents for tax purposes if you are physically present in the U.S. for:

31 days in the current calendar year; AND
183 days during the three-year period covering the current calendar year and the two preceding calendar years on a weighted basis.

To arrive at your three-year total, you include:

  • All days spent in the U.S. in the current calendar year,
  • One-third of the days spent in the U.S. in the preceding year, and
  • One- sixth of the days spent in the U.S. in the year prior to that

While the test is odd and confusing, it actually allows you spend significantly more than 183 days in the U.S. over the three-year period by giving less weight to days in previous years.

If your total over the three-year period is 182 days or less, you will not be considered a U.S. resident for tax purposes, as you don’t meet the Substantial Presence Test.

However, if your total for the three-year period is 183 days or more, you will be considered a U.S. resident for tax purposes under the Substantial Presence Test, which would require you to seek an exemption under Option 2, and possibly Option 3, below.

TIP: For U.S. residency calculation purposes, a day is considered to be a calendar day, not a 24-hour period! For example, if you enter the U.S. at 11:00 pm one night and return to Canada at 1:00 am the next morning, it counts as spending two days in the U.S. even though you were only there for 2 hours.

Example:

Glenn spends 120 days in the U.S. in 2020 (the current year), 120 days in the U.S. in 2019 and 120 days in the U.S. in 2018, he would calculate his three year total as follows:

120 days in 2020
+ 40 days in 2019 (120 ÷ 3)
+ 20 days in 2018 (120 ÷ 6)
= 180 total days
In this example, Glenn would not be considered a U.S. resident for tax purposes, as he is under the 183- day threshold for the three-year period. He should still consider filing Form 8840 to document this with the IRS.

NOTE: If you spend a fair amount of time in the U.S. each year, you should still consider filing Form 8840 to document and certify to the IRS that you were not substantially present in the U.S. under the Substantial Presence Test. You are not required to have a U.S. tax identification number to file Form 8840.

 

Option 2: Form 8840 & The Closer Connection Exemption

Even if Option 1 above doesn’t work for you, you can still get an exemption from being considered a U.S. resident for tax purposes if you qualify for and file a Form 8840 with the IRS.

The official name of Form 8840 is the “Closer Connection Exemption Connection Statement for Aliens”.

Essentially, filing Form 8840 allows Canadian snowbirds to stay in the U.S. for up to 182 days every year without being considered a U.S. resident for tax purposes (assuming you meet the criteria and file on time).

In order to qualify to file Form 8840 and receive this exemption, you’ll need to meet ALL of the following criteria:

  1. Be present in the U.S. for less than 183 days in the current calendar year
  2. Be able to establish a home in Canada in the current calendar year
  3. Be able to establish a closer connection to Canada than the U.S. during the calendar year

Form 8840 is a short form that asks you a number of questions to support your claim that you have closer economic and personal ties to Canada than the United States.

Questions cover a broad range of topics including, but not limited to:

  • Where your permanent home is
  • Where you keep your belongings
  • Where your family lives
  • Where you’re registered to vote
  • Where your driver’s license was issued
  • Were your banking and financial accounts are located
  • Where you’re covered by a government health plan

Form 8840 must be filed with the IRS no later than June 15 in the year following the year in which you qualified as a U.S. resident for tax purposes under the Substantial Presence Test. If you fail to file on time, you may be considered a U.S resident for tax purposes and subject to other penalties.

If you meet all of the criteria to be eligible for the Closer Connection Exemption and file your Form 8840 on time with the IRS, you will avoid being treated as a U.S. resident for tax purposes.

If you don’t meet all of the criteria for the Closer Connection Exemption, and you are ineligible to file a Form 8840, you must look to Option 3 below as your third and final option for relief from being deemed a U.S. resident for tax purposes.

 

Option 3: The Canada – U.S. Tax Treaty

Canadian snowbirds that spend 183 days or more in the U.S. in the current calendar year have one last option to avoid being declared a U.S. resident for tax purposes: file a U.S. Nonresident tax return (Form 1040NR) and claim an exemption under The Canada – U.S. Tax Treaty.

In order to claim an exemption under the Canada – U.S. Tax Treaty, Canadians must file a non-resident U.S. tax return Form 1040NR and attach a properly completed Form 8833, called the “Treaty Based Return Position Disclosure”. You will need a U.S. Individual Tax Identification Number (referred to as an “ITIN”) to file these forms with the IRS.

This option is by far the most onerous and complex to complete and will likely require you to incur the time and expense of hiring a U.S. tax professional to assist and advise you.

Form 1040NR and Form 8833 must be filed with the IRS no later than June 15 in the year following the year in which you qualified as a U.S. resident for tax purposes. If you fail to file on time, you may be considered a U.S resident for tax purposes and subject to other penalties.

 

The Bottom Line

Whenever possible, Canadian snowbirds should avoid being considered U.S. residents for tax purposes.

As mentioned previously, your best options are to ensure you do not meet the Substantial Presence Test or to qualify for the Form 8840 Closer Connection Exemption. Avoid having to rely on the Canada – U.S. Tax Treaty whenever possible.

While filing a Form 8840 Exemption may be a little more work than simply not meeting the Substantial Presence Test, the filing process isn’t particularly difficult or time consuming, and allows you to spend more time in the United States. It’s a common practice, and thousands of Canadian snowbirds file a Form 8840 every year.

Avoiding U.S. tax issues should never be a problem for snowbirds as long as you plan ahead and take the time to understand and follow the IRS rules. Talk to an advisor for more information. 

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Discuss How To Make The Most of Your RRSP

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. 


HOW TO MAKE THE MOST OF YOUR RRSP

Matching each saving option to your specific financial situation

Building savings can be challenging; after all, there are plenty of other things to spend your money on.  That being said, the satisfaction of watching your savings grow will likely outlast the thrill of your latest online purchase.  To maximize your savings potential, you can add guaranteed investment certificates (GICs), mutual funds, segregated funds, stocks and bonds to your registered retirement savings plan (RRSP) or tax-free savings account (TFSA)[1]


Accelerate your savings

Here are a few options you can consider to make the most of your contributions:

  1. Pay yourself first with a pre-authorized chequing contribution plan

A pre-authorized chequing (PAC) contribution plan helps you make regular, automatic contributions to your investments. It’s “paying yourself first” by treating regular saving like any re-occurring payment. This strategy is more effective because contributing more frequently gives you the advantage of dollar-cost averaging.[2]

Talk with your advisor or investment representative about adding an option that gradually increases the amount you contribute over time. It’s like giving your investments an annual raise, which can make a big difference to your savings over time.


  1. Catchup on unused RRSP contribution room with an RRSP loan

An RRSP loan can boost your savings by allowing you to catch up on RRSP contributions[3]. By catching up on contributions using a loan, you’re giving your investments the most available time to grow[4]. It helps you now and in the future because it:

  • Gives you more money earlier to grow your investment.
  • Potentially creates a larger nest egg down the road.
  • Reduces this year’s tax bill through an income deduction equal to the amount of your allowable RRSP contribution.

Borrowing your RRSP contribution doesn’t have to be costly and you can use any tax refund to help pay down your RRSP loan. This means you’re benefitting from tax advantages right away.

Despite the advantages, RRSP loans aren’t right for everyone.


  1. Contribute to a spousal RRSP

In a spousal RRSP, the higher income spouse makes an RRSP contribution and claims the tax deduction but the other spouse owns the plan and the money in it. Spousal RRSPs are generally used to equalize income during retirement, which lowers the overall family tax rate as a result.

This type of plan can be advantageous if one spouse earns a higher income than the other. Any contributions made by the higher income spouse will reduce his or her individual RRSP contribution room for the year but won’t affect how much the lower income spouse can contribute to his or her individual RRSP.

If an annuitant of a spousal RRSP withdraws an amount from the Spousal RSP account, all or part of the withdrawal would be taxed to the contributing spouse and not the annuitant to the extent that contributions were made in the year of the withdrawal or the previous two calendar years.

When it comes to investing, the earlier you start, the better.  If you have any questions, please speak with your financial advisor.


Taylor Szeto, B.Comm.

Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.

Account Representative, Manulife Securities Investment Services Inc.


Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits are Trusted Saskatoon Financial Advisors 

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Wiegers Financial & Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.

[1] If you want to add segregated funds to your RRSP, you must be 16 years of age (18 in Quebec). If you want to add segregated funds to your RRSP, you must be 16 years of age (18 in Quebec).

[2] Dollar cost averaging means investing smaller amounts at regular intervals, rather than saving up to invest in one lump sum. It can help you avoid jumping into the market at peak times by purchasing more fund units when values are low and fewer fund units when values are high.

[3] While borrowing to invest has many potential benefits (investing an initial lump sum creates greater potential for compound-growth compared to making smaller regular investment purchases), leveraging also has potential risks (market volatility may result in poor investment returns and the possibility of owning more on the loan than the investments are worth).

[4] RRSP loan proceeds cannot be used to fund TFSA contributions

Trusted Saskatoon Bookkeeping & Tax Services Books & Billing Explains Dividends Vs Salaries

Books ’N’ Billing offers full-service, cloud-based, bookkeeping services to sole proprietors, limited liability partnerships, and small corporations within Saskatchewan. Are you a small business owner? Save yourself the stress and let Shelby Prescesky the owner of Books 'N' Billing help you get your business's books in orderBooks N Billing is a Trusted Saskatoon Bookkeeping & Tax Services Specialist. In this article, she shares the difference between dividends and salary. 




Dividends Vs Salary? 



If you own an incorporated business in Canada, you have the option to pay yourself through dividends, a salary, or a combination of both. In this article, we will look at the difference between these methods of payment and the main advantages and disadvantages associated with each. We will also see some common scenarios for when a business owner may choose one method over the other.

Salary/Wages

If you are paying yourself a salary or wage, the payments become an expense of the corporation and then employment income for you personally – at the end of the year, you’ll get a T4 slip outlining your taxable earnings and deductions. The expense reduces the corporation’s taxable income, which in turn reduces corporate taxes owing.

To pay yourself a wage, the corporation will need to register a payroll account with the CRA, and then the corporation will need to withhold source deductions from each of your paychecks to later remit to the federal government. Additionally, the corporation will have to prepare T4 slips at the end of each calendar year to record your work for the year.

Why Choose Salary


Paying yourself a wage can be a way for you to earn a steady and predictable personal income. Some additional advantages of using this method would include:


  • RRSP Contribution Room; Paying yourself a wage will allow you to build an RRSP contribution room while dividend payments will not create this.

  • CPP Contributions; this is a double-edged sword, while wages will allow you to contribute to the Canada Pension Plan, as the owner of the corporation you will also be responsible for the employer’s portion of this contribution. 

  • Fewer Surprise Tax Bills; Income tax is withheld from each payment and remitted to the Receiver General. When you file your personal tax return you will have already paid income tax and will avoid a surprise personal tax bill. When paying dividends, income tax isn’t withheld and remitted which often creates personal taxes owing in April.

  • When Applying for a Mortgage; When you are attempting to qualify for a mortgage, banks like to see steady, predictable income. Earning employment income like this will help show that steady income, whereas dividend income may not be looked at as favourably. 

Dividends

Type of Transaction

Dividends are payments to shareholders of a corporation that are paid from the other tax earnings of the company. This means that dividends are not a corporate expense and do not reduce the corporate taxes paid. The flip side is that dividends carry less personal tax liability than wages because they come with a dividend tax credit.

In practice, paying dividends to shareholders of a corporation is fairly easy. Dividends are declared and cash is transferred from the corporate account to a shareholder’s personal account. Each year, the corporation must prepare and file T5s for any shareholder who received dividends.

Where it gets tricky with dividends is that they are issued and paid based on share ownership. As an example, of Terry’s Tulips :td. Want to issue $100,000 in dividends to the owners of its Class A common shares, it must do so based on the percentage of ownership of these shares. So, if Terry owns 40% of Terry’s Tulips class A shares and Teagen own the other 60%, then Terry would receive $40,000 and Teagen would receive $60,000. This can make it difficult to allocate different amounts of income to multiple shareholders of they all own the same class of shares.

Why Choose Dividends

Paying dividends can be a simple way for business owners to withdraw money from their corporation. Some key advantages include:

  • Lower Cost; Paying dividends removes the need to contribute to CPP, which reduces corporate and personal costs. The downside is that it does not allow you to contribute to the Canada Pension Plan program.

  • Simplicity; if you own 100% of your corporation, you can just declare a dividend and transfer cash from the company to your personal account without the need for payroll or remittance of source deductions.

  • Less Chance for Payroll Penalties; Payroll remittances are relentless. Usually, they have to be paid each month and late payments come with high penalties. Paying dividends eliminates the chance of late or missed payroll remittances. That being said, filling of T5s still must be completed on time once per year when paying dividends. 

Which Method Creates Less Tax?

So, the main question becomes “which method allows me to pay less Tax?”. While this is a very important question to ask, changes to the legislation beginning in 2018 have made it more difficult to reduce taxes by cheesing one method over the other. Often, the results of calculations show a fairly minimal tax saving one way or another, and there is a reason for that.

Integration

There is a tax concept called integration that legislation aims to implement. The main idea behind this is that there should be little to no difference in the overall income tax paid (personal + corporate) when comparing dividend payments and wage payments of the same amount. This works by;

  • Wages reduce corporate taxes, but in turn create higher personal taxes than dividends.

  • Dividends do not reduce corporate taxes but create less personal taxes than wages.

Dividend Sprinkling

In the past, corporate shareholders could skirt the issue of integration and tip the scales of tax savings in their direction by using a technique called dividend sprinkling. This was accomplished by spreading out dividend payments to a lower income earning spouse or adult family member. Because the spouse or adult family member are in a lower tax bracket than the person operating the business, there would be less personal tax to pay on their dividend income.

Now that it is more difficult to implement dividend sprinkling, it is especially important to consider the qualitative factors discussed earlier when deciding which method of payment to use.

Common Scenarios

Lastly, let’s look at a few common scenarios that we see and discuss what you might consider as a business owner in each case.

  • Bad at Administrative Tasks;  If making payments on time is a weakness that you have, then it may be easier and less costly to pay yourself using dividends. Wages require the regular, on-time payment of source deductions. If source deduction payments are missed or late, the penalties can add up quickly.
  • Qualifying for Financing; If you plan on purchasing a home in the near future and know that you will need to qualify for a mortgage, it may be better to pay yourself as an employee (wages/salary). Banks like to see steady income more than sporadic dividend payments.
  • Having Children / Parental Leave; If you plan on having children sometime soon and you would like to earn Maternity or Parental Benefits, then it may be better to earn income through wages. This is because withholding and remitting employment insurance premiums can enable the employee to collect maternity or parental benefits.
  • Working Income Tax Benefit; The working income tax benefit is a refundable tax credit intended to provide tax relief for eligible working low-income individuals and families. It may be beneficial to pay yourself a small salary from your business to trigger this tax credit on your personal taxes. Consider this if you have low personal or family net income for the year.


Shelby's mantra and the business tagline is one most small business owners can get behind...

Running your own business can be exciting… managing your own books can steal your joy.


If you need a second opinion, or you are at that stage in your business where you are ready to hand over the bookkeeping to a professional contact Shelby at Book N Billing today! 

 Books N Billing Bookkeeping Services Include: 

Books N Billing is a Trusted Saskatoon Bookkeeping & Tax Services Specialist 



The Trusted Saskatoon team brag about Books N Billing Bookkeeping & Tax Services

Books ’N’ Billing offers full-service, cloud-based, bookkeeping services to sole proprietors, limited liability partnerships, and small corporations within Saskatchewan. Are you a small business owner? Save yourself the stress and let Shelby Prescesky the owner of Books 'N' Billing help you get your business's books in order.Books N Billing is a Trusted Saskatoon Bookkeeping & Tax Services Specialist 

Meet Shelby Prescesky Of Books N'Billing


Whether you sell handmade soap, own a coffee shop, or drive a truck for a living, there are two things we can guarantee about your business: you earn money and you spend it. Bookkeepers are the ones who help you keep track of all that. We sat down with Shelby, the owner of Books N Billing, to find out why she decided to be a bookkeeper, what she enjoys about the job and who would be an ideal client for her. 

Shelby has always enjoyed numbers, in high school she earned University credits for pre-calculus, a subject that makes most people shudder. Shelby however, enjoyed the challenge and she elected to take an additional accounting class, it didn't take her long to decide that this is what she wanted to do for a living! 

Shelby gained her Bachelor of Commerce ( B.Com), which is an undergraduate degree in commerce and related subjects. The course is designed to provide students with a wide range of managerial skills and understanding in streams like finance, accounting, taxation and management. After finishing school, her first job on her chosen career path was with The City of Saskatoon. Shelby really enjoyed the job and the people she worked with. The role was a great experience, and she was able to learn about many different industries and see how a huge organization operates. Shelby started off doing payroll for the Police Department, and later moved into the Planning and Building departments, where she learned about the construction process and dealt with everything from books to permits!  

What Does a Bookkeeper Do? 

A bookkeeper is someone who prepares your business accounts, documenting daily financial transactions. Bookkeepers have been around as far back as 2600 BC—when records were tracked with a stylus on slabs of clay—making bookkeeping, not the oldest profession, but pretty darn close. Today any bookkeeper worth their beans uses some kind of software platform to track finances, and Shelby takes pride in always being up to date with the latest industry news and technology. 

Shelby comes from a family of female entrepreneurs, both her Mother and Grandmother operated restaurants and catering businesses, so she knows what it takes to be her own boss. Shelby is not afraid of hard work, and she decided to start her own business in 2021,  just after the birth of her 2nd child. As she said, motherhood is great preparation for entrepreneurship, and she enjoys the flexibility of setting her own work schedule at home, around the needs of her young family.

We asked Shelby what the benefits are of hiring a bookkeeper if you have a small business. She shared that her clients tell her that the peace of mind knowing that their books are in order and that filing isn't an annual scramble, cannot be overrated! Shelby makes sure to bring her expertise to the table for her clients. She prides herself on her expertise and she wants to be seen as a valuable part of her client's team. Her biggest driver is helping people,  and her enthusiasm for that is infectious! 

We asked Shelby what being trusted means to her. 

" Trust means reliability - giving your business details and accounts to someone who’s a total stranger is a risk, so it is important to operate with integrity and have ethics at the centre of all I do. I strive to be a valuable resource for clients. " - Shelby , owner Books N Billing   


As one of her clients said so well when we spoke to them as part of the unique Trusted verification process ...

" Shelby is wonderful to deal with, she answers all my questions and breaks things down in real speak. if she is not 100% sure of the answer she will go off and find the information before committing. I highly recommend Books n Billing if you are small business in need of a trustworthy bookkeeper!"  

When asked who would be an ideal client for Books N' Billing. Shelby shared that her ideal niche is small to medium businesses with less than 20 employees. She really wants to focus on serving local businesses in Saskatoon, Warman, Martensville and surrounding areas. Shelby has a wealth of experience to offer, and in particular, she has done a lot of work for clients in the trucking industry, she knows the industry well as many family members are truckers! 


Shelby's mantra and the business tagline is one most small business owners can get behind...

Running your own business can be exciting… managing your own books can steal your joy.


If you need a second opinion, or you are at that stage in your business where you are ready to hand over the bookkeeping to a professional contact Shelby at Book N Billing today! 

 Books N Billing Bookkeeping Services Include: 

Books N Billing is a Trusted Saskatoon Bookkeeping & Tax Services Specialist 








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S & E Trusted Online Directories Inc
TrustedSaskatoon.com
310 Wall St #209
Saskatoon, SK   S7K 1N7
Ph: 306.244.4150

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