Salaries & Bonuses: Owner-Manager Compensation Planning

Did you know paying a salary is a direct way to distribute business income to the owner-manager or to family members? While this may be advantageous when corporate income would otherwise be subject to tax at high rates, there’s a lot one needs to know to ensure the process is following proper policies and procedures.

In this course, owner-managers will learn how to distinguish a salary from a payment for self-employment services and why the distinction is important. Furthermore, attendees will gain a deeper understanding of the issues that arise, from an income tax perspective, in assessing whether a salary is reasonable and the rules that govern its payment. The course wraps up with an introduction to the tax treatment of employment-related benefits (i.e. bonuses).