Compare two different splits of salary and dividend for the amount an owner-manager takes out, and see the after-tax cash each leaves, then turn it into a client-ready recommendation, not just a number on screen.
The calculation is only half the work. CodaraFlow finishes the explanation, the tables, and the client-ready letter.
A blend is harder to get right than either route on its own, because the dividend has to be taxed on top of the salary rather than from zero, and the CPP and RRSP consequences differ with the split. Both mixes are worked on that basis together, so the comparison is sound and it takes one pass.
Within each mix the grossed-up dividend is taxed above the salary and other income, at the brackets it actually reaches, so the most common way a blend goes wrong is not the thing that comes back.
Change either side and both columns re-run, so showing the client a different blend is a changed figure rather than a rebuilt comparison.
Net cash, company cost, tax, CPP and RRSP room sit side by side for each split, so the judgment about which one suits the client stays with the practitioner rather than being collapsed into one number to defend.
Amounts that fail to sum to the total are surfaced as a warning, so the figures on the page stay the ones the preparer intended.
The comparison goes to the client in an advisory letter assembled from approved explanations.
This is one of the built-in calculations in CodaraFlow. Set the total amount taken out and two salary-and-dividend splits, and it works the tax through each and shows the after-tax cash, CPP contributions and RRSP room generated under each mix.
The number is not the deliverable. In CodaraFlow the result drops straight into a letter section: the firm’s approved wording, the computation tables, and the explanatory notes that actually apply to this client, written in for you. Exported as an editable Word document on your letterhead.
The same reviewed explanation, not whatever the preparer types today.
The dividend-type, CPP and RRSP, and planning notes appear only when the client’s numbers call for them.
The two-mix computation is laid out and footed automatically.
Finish it in Word, on your firm’s letterhead. No proprietary format.
Both splits run on the same integration mechanics, plus the two things only the salary side produces. The wording is firm-editable; the rules are fixed by the Act.
The salary in a split is deductible to the company, provided it is reasonable, so it comes out of pre-tax profit. The dividend does not.
The dividend in a split is grossed up to reflect the corporate income behind it, and that grossed-up amount stacks on the same split’s salary for the personal brackets.
A credit reduces the personal tax on the grossed-up dividend, reflecting tax the company already paid. The rate class fixes the dividend type, so both splits are compared on the same eligible or non-eligible basis.
The corporate rate behind the dividend turns on whether the income qualifies for the small business deduction, and that rate sets the pre-tax profit each split consumes.
Salary attracts employee and employer contributions, so each split carries its own CPP cost to the company, its own deduction from the owner’s cash, and its own contribution to future benefits.
Only salary is earned income, so each split generates a different amount of RRSP room, at 18% of the salary up to the annual dollar limit.
This is a planning estimate. It excludes the personal tax effects of the CPP deduction and tax credit, EI, the OAS clawback and provincial health levies, and it does not put a value on the CPP entitlement or the RRSP room that a salary-weighted split builds over time.
Every calculator produces a planning estimate for a qualified practitioner to review. Renshi CodaraFlow does not give tax advice.
Get a working demo account, run this calculation on a real file, and export the letter it produces.
Everything is computed from the figures you enter and assembled from your firm’s approved wording. The app never connects to AI.
Editable Word documents on your firm’s letterhead. Monthly pricing, no long-term contracts.
No. It’s one of the built-in calculations inside CodaraFlow. The result becomes a client-ready recommendation, complete with the comparison table and notes, not just a figure you copy into a client letter.
No. It compares the after-tax outcome of two mixes so you can advise the client. The recommendation, and any non-tax considerations, remain your professional judgment.
Yes. Every sentence and every note is firm-editable, and can be overridden on an individual letter.
No. The app never connects to AI. Deliverables are assembled from structured facts and your firm’s approved wording.