Do Incorporated Contractors Need Paystubs in Canada?

Incorporated contractors in Canada do not need paystubs for every dollar they take from the corporation. The answer depends on how the money is paid.

## Salary: yes, create paystubs

If your corporation pays you employment income, you should create a paystub for each pay period. Salary creates payroll obligations: CPP, EI where applicable, income tax withholding, CRA remittances, and a T4 at year end.

The paystub is the record that connects gross salary to net pay. It should show the deductions clearly so your accountant can reconcile payroll remittances and prepare your T4.

## Dividends: no paystub needed

Dividends are shareholder distributions, not employment income. They do not have CPP, EI, payroll withholding, or T4 reporting. Dividend payments should be documented with corporate resolutions and T5 reporting instead.

## Why contractors still use salary

Many incorporated contractors use at least some salary to create RRSP room, contribute to CPP, and provide cleaner income proof for lenders or landlords. Salary also looks familiar to banks because it comes with paystubs and a T4.

## Keep the record simple

If you pay yourself monthly salary, generate one monthly paystub and save it with the bank transfer confirmation. If you pay biweekly, generate one per pay period. PaystubHero can create the Canadian PDF and calculate CPP, EI, and federal tax automatically.

For related guidance, see [salary vs dividends](/blog/salary-vs-dividends-self-incorporated-canada-2026) and [CRA payroll remittance deadlines](/blog/cra-payroll-remittance-deadlines-self-incorporated-canada).