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Jane Payroll (Beta): How do Owner’s set themselves up for Payroll?

  1. Payroll
  2. Jane Payroll (Beta): How do Owner’s set themselves up for Payroll?

    3. 4 min read

This feature is currently in beta (early access) for Canadian clinics. Learn more and add yourself to the waitlist on our landing page.

You’ve got your staff set up on Jane Payroll, nice work! Don’t stop there, you deserve a payday too! Here’s how to make it happen.

Setting Up the Owner in Jane Payroll

How you set up the owner in Jane Payroll depends on how they are compensated. Typically, owner compensation is handled differently depending on whether the business is classified as a sole proprietorship or a corporation.

👤Sole Proprietor

In this setting, most owner’s pay themselves by drawing funds from the clinic bank account (Owner’s Draw).

If the owner would like to draw funds from their account through Jane Payroll, then they can be set up as a Contractor and paid with the Owner’s Draw pay type.

Here’s what that means in practice:

  • Jane won’t deduct CPP, EI, or income tax from owner payments and that’s completely expected, Jane handles that automatically by leaving those fields out for this pay type
  • The owner is responsible for managing and remitting their own taxes when they file their T1 personal tax return each year

📍 Note that Sole Proprietor clinic owners don’t need to add themselves to Jane Payroll if they’d prefer to handle all of their bank draws outside of Jane.

🏢 Incorporated Business

Set the owner’s profile up as a regular employee with a pay type such as Salary Compensation.

Here’s what that means in practice:

  • Jane will calculate and remit CPP and income tax on the owner’s behalf, just like other employees, which is typically standard for incorporated clinic owners.
  • EI exemption applies if the owner controls a large portion of the corporation (>40%). The owner can be marked as EI exempt in their Staff Profile → Payroll → Tax Info

Not sure which setup or pay types are right for you? We recommend checking with your accountant or bookkeeper to ensure everything is configured correctly for your business. 😊

❓Frequently Asked Questions

Do I need to add myself (the owner) to Payroll?

It depends. If the clinic is incorporated and the owner is considered an employee of the business, we strongly recommend that they are added to Jane Payroll along with all other employees. If they clinic is a sole proprietorship, it’s more of a convenience decision.

I am a Sole Proprietor with Employees. Can I use Jane Payroll?

Yes. You can pay your Contractors and Employees through Jane Payroll as a Sole Proprietor.

As an Incorporated Business Owner, I take both Salary and Dividend, can this be set up?

Yes! You can set this up using the Owner’s Draw pay type. We recommend giving it a custom name, like Dividends or something similar.

Payments made with this type will not be included as income on year-end forms, as Jane automatically excludes CPP, EI, and income tax calculations for this pay type. The T5 for the dividend payments will need to be handled outside of Jane Payroll. We’d recommend reaching out to your accountant for guidance on how to manage this on your tax filings.