6 worked Cross-Border 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 cross-border payroll services work, not a specific client's file.
Case Study 1 · Sale and succession
$845,000 Sheltered By The Lifetime Capital Gains Exemption — Manufacturing Employer, Barrie
The situation — A 30-employee manufacturer, Barrie, Ontario
A 30-employee manufacturer in Barrie, Ontario had an offer on the table and 32 months to close. The shares did not qualify for the capital gains exemption, and no valuation on file to support the price the parties had agreed was part of the reason.
What we did for A 30-employee manufacturer, Barrie, Ontario
We purified the corporation so the shares met the qualifying tests, then reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s well ahead of the closing date.
The result — A 30-employee manufacturer, Barrie, Ontario
The sale closed on schedule with $845,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 2 · Scaling without breaking
Scaled To 36 Staff With $134,000 Of Working Capital Freed — Stock-Option Tech Team, Windsor
Client: A growing tech team with stock options · Where: Windsor, Ontario · Engagement: 4 weeks, fixed fee
Headcount reached36
Working capital freed$134,000
Missed deadlinesZero
The situation — A growing tech team with stock options, Windsor, Ontario
A growing tech team with stock options in Windsor, Ontario was growing fast — headcount to 36 in eighteen months — and the back office had not kept up. Remittances still going out monthly after the business had moved to the accelerated threshold was the first thing to break.
What we did for A growing tech team with stock options, Windsor, Ontario
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A growing tech team with stock options, Windsor, Ontario
The business reached 36 staff with no missed remittance and no late filing. $134,000 of working capital was freed in the process.
Client: A clinic paying its associates as contractors · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Annual saving$25,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A clinic paying its associates as contractors, Red Deer, Alberta
A clinic paying its associates as contractors in Red Deer, Alberta was carrying an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A clinic paying its associates as contractors, Red Deer, Alberta
Working with the client's lawyer, we paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued and prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A clinic paying its associates as contractors, Red Deer, Alberta
The structure now matches the business. Annual saving of $25,000, and the reorganisation itself was tax-neutral.
Case Study 4 · Planning that cut the bill
$27,000 Cut From The Annual Tax Bill — High-Turnover Restaurant, Regina
Client: A restaurant with heavy seasonal turnover · Where: Regina, Saskatchewan · Engagement: 5 weeks, fixed fee
First-year saving$27,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A restaurant with heavy seasonal turnover, Regina, Saskatchewan
A restaurant with heavy seasonal turnover in Regina, Saskatchewan was compliant but paying more than it needed to. The prior year had been filed correctly and still left a director facing a personal assessment for unremitted source deductions on the table.
What we did for A restaurant with heavy seasonal turnover, Regina, Saskatchewan
We modelled the current position against the alternatives before changing anything, then 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.
The result — A restaurant with heavy seasonal turnover, Regina, Saskatchewan
The change saved $27,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 5 · Backlog brought current
5 Years Filed, $31,000 Removed From The Assessed Balance — Security Services Contractor, Burnaby
Client: A security services contractor · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Years filed5
Assessed balance removed$31,000
CollectionsStopped
The situation — A security services contractor, Burnaby, British Columbia
A security services contractor in Burnaby, British Columbia had not filed for 5 years. The CRA had issued arbitrary assessments, and the business was carrying T4s that did not agree to the payroll register or the general ledger on top of a growing interest balance.
What we did for A security services contractor, Burnaby, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing, filing the years in sequence rather than all at once.
The result — A security services contractor, Burnaby, British Columbia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $31,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 6 · Cash and remittance control
Instalments Rebased, $14,500 Of Cash Returned To The Business — Higher-Frequency Remitter, Saskatoon
Client: An employer whose remittance frequency moved up a threshold · Where: Saskatoon, Saskatchewan · Engagement: 4 weeks, fixed fee
Cash returned$14,500
Instalment basisCurrent year
ReviewedQuarterly
The situation — An employer whose remittance frequency moved up a threshold, Saskatoon, Saskatchewan
An employer whose remittance frequency moved up a threshold in Saskatoon, Saskatchewan was paying instalments calculated on a prior year that no longer reflected the business. Long-term contractors who met every test for employment was tying up $14,500 of cash.
What we did for An employer whose remittance frequency moved up a threshold, Saskatoon, Saskatchewan
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result — An employer whose remittance frequency moved up a threshold, Saskatoon, Saskatchewan
$14,500 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
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.
