A lot of business owners prefer dividend over salary as it is more flexible and waive CPP contribution, however, when your household incur childcare expense, you need to at least pay yourself a portion of salary as compensation. Childcare expenses can be deducted by a lower income spouse who has earned income, which includes salaries,tips, commissions and business earning from employment or self-employment. If a lower income spouse only earns dividend income, interest, and ca