CPA for doctors, dentists, and consultants in BC
Salary versus dividends is the year. T2, T1, and a compilation have to follow that choice, not land in March as a surprise.
How you get paid is the tax year
A BC professional corporation still has a personal return. If salary, dividends, and the T2 are planned in different months, take-home is a guess.
Salary versus dividends
How you are paid changes tax, CPP, and what you keep. Set the mix during the year so March is a filing, not a rewrite.
T2 and T1 in different weeks
The corporation files a T2. You still file a T1. GST often sits in the middle. We file them as one year.
Compilation parked until CRA writes
Notice to Reader statements wait while the practice runs. Then adjustments and CRA letters arrive together. We keep the file moving so that week does not exist.
Decide the mix. Then file.
First the mix you take home. Then T2 and T1. Then payroll for next year.
01
Decide how you are paid
Salary, dividends, or both, with CPP and take-home on the table before you run another year.
02
File T2 and T1 as one year
Corporate return, personal return, GST where it applies, and a Notice to Reader when you need one.
03
Set next year's payroll
Instalments and a salary you can actually run, so the mix is not guessed again in March.
Bring last year's T4 and T5.
We will tell you if the mix should change before you run another year the same way.