6 worked NPO 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 npo payroll services work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$15,000 Saved By Correcting What Prior Filings Had Missed — Home-Care Agency, Edmonton
A home-care agency in Edmonton, Alberta asked for a second opinion on NPO payroll services. That followed three years of rising tax. The review found company vehicles used personally with no logbook and no taxable benefit reported.
Case 1: what we did
We built the comparison first: current structure against two alternatives. Then we reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
Case 1: the result
First-year saving of $15,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Client: A restaurant with heavy seasonal turnover. Where: Halifax, Nova Scotia. Engagement: 3 weeks, fixed fee.
Penalty cancelled$36,500
Relief applicationGranted
ReturnAccepted as filed
Case 2: the situation
A restaurant with heavy seasonal turnover in Halifax, Nova Scotia had already missed one deadline and was about to miss a second. Behind it sat T4s that did not agree to the payroll register or the general ledger. A penalty of $36,500 was accruing.
Case 2: what we did
We split the work into what had to happen before the deadline and what could follow it. 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.
Case 2: the result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $36,500 of the penalty already assessed on the earlier year.
Case Study 3 · Backlog brought current
$50,000 Of Arbitrary Assessments Vacated After 3 Years — Manufacturing Employer, Regina
3 years of unfiled returns had turned into notional assessments at a 30-employee manufacturer in Regina, Saskatchewan. Underneath lay a director facing a personal assessment for unremitted source deductions. Collections had already started.
Case 3: what we did
We moved the account to the correct remitter frequency and caught up the arrears. We filed a taxpayer relief request that cancelled the bulk of the penalty. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
Case 3: the result
All 3 years were accepted as filed. $50,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 4 · CRA review defended
$101,000 Reassessment Reduced To Nil On Review — Part-Time Program Employer, Moncton
Client: A charity with part-time program staff. Where: Moncton, New Brunswick. Engagement: 6 weeks, fixed fee.
Reassessment reduced toNil
Tax protected$101,000
Prior filingsUndisturbed
Case 4: the situation
A review notice arrived at a charity with part-time program staff in Moncton, New Brunswick, covering NPO payroll services for two tax years. The auditor's working position was an adjustment of $101,000. It was driven by a bonus accrued to bring the year-end tax bill down and still unpaid more than a year later.
Case 4: what we did
Rather than negotiate, we rebuilt the record. We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
Case 4: the result
The auditor accepted the documented position and closed the review without adjustment, protecting $101,000 and leaving the prior filings undisturbed.
Case Study 5 · Cash and remittance control
Remittance Schedule Corrected, $144,000 Refunded — Company-Vehicle Employer, Toronto
Client: An employer providing company vehicles. Where: Toronto, Ontario. Engagement: 8 weeks, fixed fee.
Overpayment refunded$144,000
Late remittances sinceZero
ScheduleAutomated
Case 5: the situation
Remittances at an employer providing company vehicles in Toronto, Ontario were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year.
Case 5: what we did
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
Case 5: the result
Penalties stopped from the following remittance onwards, and $144,000 of overpaid instalments was refunded.
Case Study 6 · Objection and relief
$115,000 Of Penalties And Interest Cancelled On Relief — Higher-Frequency Remitter, Ottawa
Client: An employer whose remittance frequency moved up a threshold. Where: Ottawa, Ontario. Engagement: 8 weeks, fixed fee.
Penalties and interest cancelled$115,000
Relief groundsAccepted
AssessmentAdjusted to filed position
Case 6: the situation
An assessment of $115,000 landed at an employer whose remittance frequency moved up a threshold in Ottawa, Ontario following a desk review. It turned on T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty. The auditor had not seen the records behind it.
Case 6: what we did
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 then set out the legislative basis for the position alongside the documents supporting it.
Case 6: the result
$115,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
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.
