6 worked Biweekly Payroll Services case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to biweekly payroll services work, not a specific client's file.
Client: A restaurant with heavy seasonal turnover · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Overpayment refunded$108,000
Late remittances sinceZero
ScheduleAutomated
The situation — A restaurant with heavy seasonal turnover, Moncton, New Brunswick
Remittances at a restaurant with heavy seasonal turnover in Moncton, New Brunswick were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat long-term contractors who met every test for employment.
What we did for A restaurant with heavy seasonal turnover, Moncton, New Brunswick
We reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A restaurant with heavy seasonal turnover, Moncton, New Brunswick
Penalties stopped from the following remittance onwards, and $108,000 of overpaid instalments was refunded.
Case Study 2 · Records and systems rebuilt
Month-End Close Cut From 5 Weeks To 8 Days — Mixed-Crew Construction Firm, Windsor
Client: A construction firm with union and non-union crews · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
Close time before5 weeks
Close time after8 days
Year-endReview, not rebuild
The situation — A construction firm with union and non-union crews, Windsor, Ontario
The accounting file at a construction firm with union and non-union crews in Windsor, Ontario was built on remittances still going out monthly after the business had moved to the accelerated threshold. The year-end had taken 5 weeks each of the last three years.
What we did for A construction firm with union and non-union crews, Windsor, Ontario
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A construction firm with union and non-union crews, Windsor, Ontario
The file reconciles. Month-end closes in 8 days instead of 5 weeks, and the year-end is a review rather than a reconstruction.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $117,000 Penalty Avoided — Stock-Option Tech Team, Victoria
Client: A growing tech team with stock options · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Penalty avoided$117,000
Turnaround10 weeks
FiledOn time
The situation — A growing tech team with stock options, Victoria, British Columbia
A growing tech team with stock options in Victoria, British Columbia came to us 10 weeks before its filing deadline with T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty. A late filing would have triggered a penalty of roughly $117,000 before interest.
What we did for A growing tech team with stock options, Victoria, British Columbia
We worked backwards from the deadline. We corrected the CPP and EI withholding for the balance of the year and set the employee up to recover the over-deduction on the personal return, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A growing tech team with stock options, Victoria, British Columbia
The return was filed on time and complete. The $117,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $22,000 Vacated — Seasonal Landscaping Employer, Red Deer
Client: A landscaping company with seasonal staff · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Assessment vacated$22,000
Supporting recordsNow on file
AccountCleared
The situation — A landscaping company with seasonal staff, Red Deer, Alberta
A landscaping company with seasonal staff in Red Deer, Alberta was carrying $22,000 of penalties and interest arising from an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year, much of it accumulated during a period the CRA itself had delayed.
What we did for A landscaping company with seasonal staff, Red Deer, Alberta
We wrote each pay code against its income tax, CPP and EI treatment, so a new benefit could not reach the payroll without a decision on how it was withheld and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A landscaping company with seasonal staff, Red Deer, Alberta
The assessment was vacated. $22,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $31,000 Saved Each Year — Multi-Province Driver Fleet, Kitchener
Client: A logistics operator with drivers in three provinces · Where: Kitchener, Ontario · Engagement: 8 weeks, fixed fee
Annual saving$31,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A logistics operator with drivers in three provinces, Kitchener, Ontario
A logistics operator with drivers in three provinces in Kitchener, Ontario had outgrown the structure it started with. A bonus accrued to bring the year-end tax bill down and still unpaid more than a year later was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A logistics operator with drivers in three provinces, Kitchener, Ontario
We mapped the current structure, modelled the target, and reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A logistics operator with drivers in three provinces, Kitchener, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $31,000 a year while removing the exposure the old one carried.
Case Study 6 · Backlog brought current
Collections Halted And $68,000 Cut From A 3-Year Backlog — Higher-Frequency Remitter, Regina
Client: An employer whose remittance frequency moved up a threshold · Where: Regina, Saskatchewan · Engagement: 6 weeks, fixed fee
Balance reduced by$68,000
Backlog cleared3 years
CollectionsHalted
The situation — An employer whose remittance frequency moved up a threshold, Regina, Saskatchewan
By the time an employer whose remittance frequency moved up a threshold in Regina, Saskatchewan called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat a director facing a personal assessment for unremitted source deductions.
What we did for An employer whose remittance frequency moved up a threshold, Regina, Saskatchewan
We reconstructed the records year by year and paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued. Each filing replaced an arbitrary assessment with a real one.
The result — An employer whose remittance frequency moved up a threshold, Regina, Saskatchewan
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $68,000, and a relief application addressed part of the accumulated interest.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
