Brownlow Partners Chartered Professional Accountants

Many business owners spend years building their company but postpone planning for what comes next.

Whether retirement is five years away or fifteen, succession planning helps:
✔ Protect business value
✔ Reduce transition risks
✔ Create tax efficiencies
✔ Provide peace of mind

The best succession plans start earlier than you think. https://brownlowcas.com/advisory/

💡 RRSP Match vs. DPSP — What’s the Difference?
If you’re an employer offering retirement benefits, here’s a quick breakdown 👇

📌 RRSP Matching
When an employer matches an employee’s RRSP contribution:

• It’s considered a taxable benefit
• Added to Box 14 (employment income) + Box 40 (benefits) on the T4
• Subject to CPP & EI (but typically no income tax withheld)
• Employee receives an RRSP receipt to claim the offsetting deduction

💼 For accounting:
• Employer match = expense
• Employee portion = not an expense (flows through to RRSP)
• Often tracked through a liability account until remitted

📌 DPSP (Deferred Profit Sharing Plan)
A different structure entirely:

• Only the employer contributes (no employee portion)
• Not a taxable benefit when contributed ❌
• Reported in Box 52 (Pension Adjustment)
• Reduces employee’s future RRSP room

💼 For accounting:
• Employer contributions = business expense
• No CPP, EI, or income tax withholdings

✨ Bottom line:
RRSP matching = immediate taxable benefit
DPSP = tax-deferred employer contribution tied to profit sharing

Have questions about which plan makes the most sense for your business? Let’s talk!

🌸 Spring Fresh Start 🌸

Now is the perfect time to shift from filing preparation to longer term planning.

✔️ Review your cash flow
Do you know what’s coming in—and going out—each month? A clear picture helps you make better day-to-day decisions.

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Happy Victoria Day!

Wishing our clients, colleagues, and community a safe and relaxing long weekend as we celebrate Victoria Day 🌷

Whether you're heading to the cottage, firing up the BBQ, or just taking a well-deserved break—we hope you make the most of it!

We’ll be back refreshed and ready to help you plan for what’s ahead!