How Should Business Owners Pay Themselves? Salary vs. Dividends

In this episode of Retirement Planning Simplified, Joe Curry sits down with financial expert Aravind Sithamparapillai to talk about how business owners should structure their compensation. They break down the pros and cons of salary versus dividends, how CPP (Canada Pension Plan) fits into retirement planning, and what business owners need to know about tax integration.

You’ll also hear about:

• When paying into CPP can actually help you in retirement
• How RRSPs compare to CPP as retirement tools
• How to avoid OAS clawbacks
• What to consider when clearing out notional accounts

Here’s what you’re in for:

00:00 – Intro

00:07 – Common business owner compensation strategies

01:09 – How tax integration works

03:28 – When to choose dividends vs. salary

07:01 – Is CPP a cost or a future benefit?

09:25 – Understanding employee vs. employer CPP contributions

20:42 – RRSPs vs. CPP for retirement planning

27:29 – How taxes and government benefits affect your strategy

30:24 – Wrap-up and where to learn more

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ABOUT ARAVIND SITHAMPARAPILLAI

Aravind Sithamparapillai is a motivated and collaborative professional who brings a competitive edge, a team-first mindset, and a strong belief in the value of authentic relationships. He’s driven not just to succeed, but to support those around him and create a positive, lasting impact. Known for his dedication and integrity, Aravind approaches every challenge with energy, empathy, and a commitment to excellence.

You can reach out to Aravind through:

LinkedIn: https://www.linkedin.com/in/sithamparapillai

https://calendly.com/aravind-sithamparapillai-ironwoodcanada/30min

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ABOUT JOE CURRY

Joe Curry is the host of Business and Exit Planning Simplified and the owner and lead financial planner at Matthews + Associates in Peterborough, Ontario. A Certified Financial Planner and Certified Exit Planning Advisor, Joe is passionate about helping business owners maximize value, plan successful exits, and find purpose beyond their business. His mission is to ensure clients retire with confidence—financially secure and personally fulfilled.

You can reach out to Joe through:

LinkedIn: https://www.linkedin.com/in/curryjoe

Website: https://www.retirementplanningsimplified.ca/

https://www.facebook.com/RetirementPlanningSimplified/

https://matthewsandassociates.ca/

ABOUT BUSINESS AND EXIT PLANNING SIMPLIFIED

The Business and Exit Planning Simplified podcast offers clear, actionable guidance to help business owners maximize value, plan successful exits, and achieve financial freedom. Hosted by Joe Curry, a Certified Financial Planner and Certified Exit Planning Advisor, each episode delivers expert insights, real-life case studies, and practical strategies tailored for service-based entrepreneurs approaching retirement. The podcast empowers listeners to transition with clarity, confidence, and a renewed sense of purpose.

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Disclaimer:

Opinions expressed are those of Joseph Curry, a registrant of Aligned Capital Partners Inc. (ACPI), and may not necessarily be those of ACPI. This video is for informational purposes only and not intended to be personalized investment advice. The views expressed are opinions of Joseph Curry and may not necessarily be those of ACPI. Content is prepared for general circulation and information contained does not constitute an offer or solicitation to buy or sell any investment fund, security or other product or service.