If your business is not incorporated, whether or not you pay yourself a “salary” is irrelevant for tax purposes because you and your business are considered a single entity by Canada Revenue Agency (CRA).You will be taxed on your net earnings from the business, which you will include on your personal tax return as self employment income. Thus, there are no “deductions” to be taken from payments you make to yourself. You are not required to pay Employment Insurance, but you will have to pay income tax and Canada Pension Plan (CPP) premiums on the self employment income reported on your tax return.If your small business is incorporated, whether or not you pay yourself a salary is a tax planning decision. Another option is to pay yourself (and other shareholders, depending on share structure) a dividend, which is not deductible for the corporation. There are many factors to consider, and professional advice in this area is recommended. If you decide to pay yourself a salary, you will be required to deduct income tax and CPP premiums from your salary.