The choice between dividends and salary is not only about reducing tax today. It affects social contributions, RRSP room, borrowing capacity, personal protection and corporate planning.
Salary creates employment income
Salary can create RRSP contribution room and support Quebec Pension Plan contributions. It can also make personal financing easier because it looks like stable income.
The tradeoff is payroll remittances and employer charges that must be planned in cash flow.
Dividends are simpler, but less complete
Dividends may be administratively simpler for a profitable corporation, but they do not create RRSP room or the same protections as salary.
They should be planned with real corporate profits, share structure and personal tax in mind.