Jill(not her real name) is a single mom of 2 and has a son attending college. She makes $30,000 a year and finds that paying EI premiums etc doesn't help pay her bills. As compared to Sally Jill doesn't have the option to pay 12-13% corporate tax and have her and her family take the earnings out as dividends and pay little or no additional tax. Yes, because Sally chose not to take her income as salary and pay at least the tax that Jill pays, she has no employment income thus not eligible for CPP or RRSP contributions which helps for retirement. Her Choice.