What tax accounting services does Monetori offer?

• annual financial statements
• provincial and federal tax returns (personal and corporate)
• several hours with our professionals on an annual basis
• joint presentation of financial statements and annual reports on investment portfolios, for an overall view of your situation
• bookkeeping with quickbooks
• consultation with a tax specialist if necessary

Our team can quickly set up your medical corporation through our partner lawyers. We'll obtain your tax numbers, your deduction numbers and your corporate book (physical and virtual). We offer this service at an EXTREMELY competitive price, and our service is 100% turnkey. We also take care of the steps involved in obtaining CMQ (Collège des médecins du Québec) approval for your right to practice as a corporation.

The turnkey service for the creation of your medical corporation has a fixed fee of $2000 (+taxes). This price includes the cost of the disbursement to the Registraire des entreprises ($800), the payment to the CMQ for file analysis ($400), the time charged by the lawyers, setting up payroll, obtaining DAS and tax numbers, as well as a one-hour educational meeting to fully explain how payroll, source deductions, personal and corporate instalments work, and to answer all your questions about corporate practice for Quebec doctors.

Our packages are priced at $200/month, $250/month and $300/month, depending on the package you choose. These prices, already competitive in this market, simply become unbeatable for customers who bundle all their services under the Monetori banner. If you have enough investment assets with us, your accounting bill will simply disappear.

For an incorporated physician, the choice between remuneration in the form of salary or dividends has tax and financial implications. Here are the main differences:

1. Tax treatment

• Salary: Salaries are taxed as personal income. They are deductible as an expense for the company, thus reducing its tax liability. In return, the doctor pays personal income tax on salaries.
• dividends: dividends are distributed from the company's after-tax profits and are then taxed at the personal level, usually at a lower rate. They are not deductible for the company, which means that the company pays the tax before distributing them.

2. Employee benefits

• Salary: Physicians can contribute to a retirement plan (such as an RRSP) and receive social security benefits. They can also take advantage of insurance (such as health or disability insurance) through the company.
• dividends: dividends do not qualify for pension contributions or public insurance benefits, as they are not considered employment income.

3. Social security contributions

• Salary: Salary is subject to social contributions (such as Canada Pension Plan and Employment Insurance).
• dividends: dividends are not subject to social security contributions, which may lighten the overall bill, but it also means less coverage.

4. Impact on retirement income

• Salary: With salaries, a doctor accumulates contribution rights to a pension plan.
• dividends: dividends do not generate contribution room, which can limit RRSP contribution capacity.

Optimal choice
In general, the optimal approach depends on the doctor's financial and tax objectives. A mix of salary and dividends is often used to balance tax and social security contributions while maximizing retirement benefits.

It's worth considering incorporation when you don't need 100% of your professional income to cover your personal living costs. Since the corporation's tax rate is much lower (20.5%) than that of a doctor in the higher income brackets (53.3%), keeping a portion of your income in the corporation will reduce the amount of tax you have to pay. If you need 100% of your income to support your family, it won't be worth setting up this structure and incurring the associated costs (annual accounting fees and incorporation costs), if no tax savings result.

In Quebec, income splitting with a medical corporation is more limited than before due to federal "split income" rules introduced in 2018 (known as "split income tax rules" or SIT). These rules apply to restrict income splitting between family members in certain situations, but there are still options available for some incorporated physicians. Here's an overview of what's allowed and what's not:

1. Splitting with a spouse or adult children :

• If your spouse or adult children (age 18 and over) are actively involved in the medical company (for example, by assuming important functions), they can receive dividends without being subject to the IRF rules.
• Active participation is generally defined as substantial involvement in the business for more than 20 hours per week during the year. Otherwise, the Canada Revenue Agency (CRA) may consider dividends to be split income, subject to high marginal tax rates.

2. Income splitting with children aged 18 to 24 :

• You can still pay dividends to an adult child (age 18 to 24) in certain situations, but he or she must own shares in the company and participate in the business in a substantial way, as mentioned above.
• However, CRA requires that these dividends be reasonable in relation to the child's contributions, which often limits eligible amounts.

3. dividends paid to spouses age 65 and over:
For physicians age 65 and over, it is permissible to pay dividends to their spouse without it being considered split income, even if the spouse is not actively involved in the corporation's activities. This allows a certain amount of income splitting for retirement planning purposes.

In summary
Income splitting with a medical corporation has become more complex, but some options remain available. It is often advantageous to consult a tax professional who can optimize the dividend structure and help you minimize the impact of the IRF rules.

The cost of accounting services is a deductible expense from your personal and corporate income.

The answer to this question varies from customer to customer. It will depend on the cost of the family, the spouse's income and tax situation. Generally speaking, we suggest paying enough salary to cover the cost of living and the savings plan established at the personal level. We also consider it important to maximize contributions to the RRQ (Régie des rentes du Québec), which implies a minimum salary of $73,200 in 2024.

Every year (and possibly several times a year), you'll receive different notices from Revenue Canada and Revenue Quebec. You can simply take a photo of the document from the Monetori mobile application, and drop it in. Our accounting professionals will receive a notification and can file and process the document in your file.

As a self-employed or incorporated professional, no deductions are made at source from your remuneration. These deductions at source represent income tax at both levels of government, as well as deductions related to the various plans (RQAP, FSST, RRQ). Once you've completed a tax year, both governments will use your income for that year as a basis for requesting quarterly instalments in the following year. We're extremely familiar with this process, and can help you with this aspect of your financial management.