6 worked Charity 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 charity payroll services work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 4 Days — Stock-Option Tech Team, Brampton
Client: A growing tech team with stock options · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Close time before6 weeks
Close time after4 days
Year-endReview, not rebuild
The situation — A growing tech team with stock options, Brampton, Ontario
The accounting file at a growing tech team with stock options in Brampton, Ontario had a weak foundation. It was built on T4s that did not agree to the payroll register or the general ledger. The year-end had taken 6 weeks each of the last three years.
What we did for A growing tech team with stock options, Brampton, Ontario
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A growing tech team with stock options, Brampton, Ontario
The file reconciles. Month-end closes in 4 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
Case Study 2 · Cash and remittance control
Instalments Rebased, $114,000 Of Cash Returned To The Business — Home-Care Agency, Mississauga
The situation — A home-care agency, Mississauga, Ontario
A home-care agency in Mississauga, Ontario was paying instalments calculated on a prior year. That year no longer reflected the business. T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty was tying up $114,000 of cash.
What we did for A home-care agency, Mississauga, Ontario
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, 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.
The result — A home-care agency, Mississauga, Ontario
$114,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 3 · Deadline rescue
9-Week Turnaround Beat The Deadline And Saved $94,000 — Part-Time Program Employer, Victoria
Client: A charity with part-time program staff · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Late-filing penalty avoided$94,000
Filed with19 days to spare
Next yearPapers ready
The situation — A charity with part-time program staff, Victoria, British Columbia
A charity with part-time program staff in Victoria, British Columbia was weeks away from the deadline for charity payroll services. Behind that sat a director facing a personal assessment for unremitted source deductions. The exposure if the date slipped was around $94,000.
What we did for A charity with part-time program staff, Victoria, British Columbia
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A charity with part-time program staff, Victoria, British Columbia
Filed with 19 days to spare. $94,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $47,000 Saved Each Year — Contractor-Paid Clinic, Hamilton
Client: A clinic paying its associates as contractors · Where: Hamilton, Ontario · Engagement: 11 weeks, fixed fee
Annual saving$47,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A clinic paying its associates as contractors, Hamilton, Ontario
A clinic paying its associates as contractors in Hamilton, Ontario had outgrown the structure it started with. Remittances still going out monthly after the business had moved to the accelerated threshold was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A clinic paying its associates as contractors, Hamilton, Ontario
We mapped the current structure and modelled the target. Then 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. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A clinic paying its associates as contractors, Hamilton, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $47,000 a year while removing the exposure the old one carried.
Case Study 5 · Objection and relief
Notice Of Objection Allowed In Full, $37,500 Reversed — Seasonal Landscaping Employer, Kelowna
Client: A landscaping company with seasonal staff · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Amount reversed$37,500
ObjectionAllowed in full
Account balanceNil
The situation — A landscaping company with seasonal staff, Kelowna, British Columbia
A landscaping company with seasonal staff in Kelowna, British Columbia had been reassessed for $37,500. 20 days were left on the objection deadline. The reassessment rested on a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later.
What we did for A landscaping company with seasonal staff, Kelowna, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued.
The result — A landscaping company with seasonal staff, Kelowna, British Columbia
The appeals officer allowed the objection in full. $37,500 was reversed and the account returned to a nil balance.
Case Study 6 · Backlog brought current
3 Years Filed, $53,000 Removed From The Assessed Balance — Two-Province Retail Chain, London
Client: A retail chain across two provinces · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Years filed3
Assessed balance removed$53,000
CollectionsStopped
The situation — A retail chain across two provinces, London, Ontario
A retail chain across two provinces in London, Ontario had not filed for 3 years. The CRA had issued arbitrary assessments. The business was carrying long-term contractors who met every test for employment. That came on top of a growing interest balance.
What we did for A retail chain across two provinces, London, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. We filed the years in sequence rather than all at once.
The result — A retail chain across two provinces, London, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $53,000 of the estimated balance came off, with a payment arrangement covering the rest.
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.
