6 worked Bonus and Commission Payroll 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 bonus and commission payroll work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $3,000 In Unclaimed Input Tax Found — Stock-Option Tech Team, Ottawa
Client: A growing tech team with stock options · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Unclaimed tax found$3,000
Records rebuilt11 months
ProcessDocumented
The situation — A growing tech team with stock options, Ottawa, Ontario
A growing tech team with stock options in Ottawa, Ontario could not answer basic questions about its own numbers. T4s that did not agree to the payroll register or the general ledger sat between the bank statements and the ledger.
What we did for A growing tech team with stock options, Ottawa, Ontario
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A growing tech team with stock options, Ottawa, Ontario
Records rebuilt and reconciled, $3,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Backlog brought current
5 Years Filed, $125,000 Removed From The Assessed Balance — Home-Care Agency, Hamilton
The situation — A home-care agency, Hamilton, Ontario
A home-care agency in Hamilton, Ontario had not filed for 5 years. The CRA had issued arbitrary assessments. The business was carrying T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty. That came on top of a growing interest balance.
What we did for A home-care agency, Hamilton, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. We reviewed each contractor against the CRA’s control and integration tests and converted those who met the employment tests. We priced the transition before it was forced by a ruling. We filed the years in sequence rather than all at once.
The result — A home-care agency, Hamilton, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $125,000 of the estimated balance came off, with a payment arrangement covering the rest.
Client: A charity with part-time program staff · Where: Halifax, Nova Scotia · Engagement: 9 weeks, fixed fee
Amount recovered$100,000
Reporting statusCurrent
Annual effortHours, not weeks
The situation — A charity with part-time program staff, Halifax, Nova Scotia
Foreign holdings at a charity with part-time program staff in Halifax, Nova Scotia had passed the reporting threshold without anyone noticing. Behind the disclosure problem sat a director facing a personal assessment for unremitted source deductions.
What we did for A charity with part-time program staff, Halifax, Nova Scotia
We wrote each pay code against its income tax, CPP and EI treatment. That way, a new benefit could not reach the payroll without a decision on how it was withheld. We claimed the treaty relief and foreign tax credits on the Canadian return and corrected the disclosure position for the open years.
The result — A charity with part-time program staff, Halifax, Nova Scotia
The treaty position was accepted and $100,000 was recovered. Reporting is now current and the annual process takes hours rather than weeks.
Case Study 4 · Planning that cut the bill
Remuneration Review Saved $55,000 Across Corporate And Personal Returns — Contractor-Paid Clinic, London
Client: A clinic paying its associates as contractors · Where: London, Ontario · Engagement: 3 weeks, fixed fee
Combined saving$55,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A clinic paying its associates as contractors, London, Ontario
Nothing was wrong at a clinic paying its associates as contractors in London, Ontario. The filings were on time and accurate. What they were not was planned. Remittances still going out monthly after the business had moved to the accelerated threshold had never been reviewed.
What we did for A clinic paying its associates as contractors, London, Ontario
We corrected the CPP and EI withholding for the balance of the year. We set the employee up to recover the over-deduction on the personal return. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A clinic paying its associates as contractors, London, Ontario
$55,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 5 · Objection and relief
$96,000 Of Penalties And Interest Cancelled On Relief — Seasonal Landscaping Employer, Brampton
Client: A landscaping company with seasonal staff · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$96,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A landscaping company with seasonal staff, Brampton, Ontario
An assessment of $96,000 landed at a landscaping company with seasonal staff in Brampton, Ontario following a desk review. It turned on a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later. The auditor had not seen the records behind it.
What we did for A landscaping company with seasonal staff, Brampton, Ontario
We paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A landscaping company with seasonal staff, Brampton, Ontario
$96,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $50,000 Saved Each Year — Two-Province Retail Chain, Kitchener
Client: A retail chain across two provinces · Where: Kitchener, Ontario · Engagement: 7 weeks, fixed fee
Annual saving$50,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A retail chain across two provinces, Kitchener, Ontario
A retail chain across two provinces in Kitchener, Ontario had outgrown the structure it started with. Long-term contractors who met every test for employment was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A retail chain across two provinces, Kitchener, Ontario
We mapped the current structure and modelled the target. Then we reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A retail chain across two provinces, Kitchener, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $50,000 a year while removing the exposure the old one carried.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. 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.
