I'm an IT contractor and required in some of my contracts to have a corporation. I created my corporation, opened a corporate account and have been collecting income for about 6 months now...
... I should probably pay myself.
I learned that there are three ways to do this:
I can get a second HST number, transfer money to my personal account, remit HST and pay personal income tax. Nothing complicated.
I can run "payroll" including remittances such as CPP and EI,
I can pay myself dividends
Any idea why I might pick one method over the other? Payroll doesn't look too complex with some of the tools out there now. I'd get the benefit of EI (and CPP, for what it's worth).
I don't want to make things unnecessarily complex though. It may also not be the best bang for my buck. I've never collected EI in my life, and I don't expect much to come out of CPP when I'm ready to retire.
Transferring money to myself seems too easy... and dividends seem the realm of corporate accountants.
Is it necessary for me to hire an accountant for a small business with almost no expenses, few sources of income, and a single employee? If so, what should I look for in an accountant? Should I be looking for a corporate accountant or a personal accountant?
N.B. There's a good description here: http://vereecke.ca/index.php/articles/will-that-be-salary-or-dividends/