6 worked Online 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 online payroll services work, not a specific client's file.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $16,000 Of Annual Savings — Contractor-Paid Clinic, Toronto
Client: A clinic paying its associates as contractors · Where: Toronto, Ontario · Engagement: 8 weeks, fixed fee
Saving per year$16,000
DocumentationComplete
Transfer basisRollover
The situation — A clinic paying its associates as contractors, Toronto, Ontario
The structure at a clinic paying its associates as contractors in Toronto, Ontario dated from years earlier. It had been set up for a business that no longer existed. An employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year had become expensive.
What we did for A clinic paying its associates as contractors, Toronto, Ontario
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A clinic paying its associates as contractors, Toronto, Ontario
$16,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $121,000 Reversed — Mixed-Crew Construction Firm, Mississauga
Client: A construction firm with union and non-union crews · Where: Mississauga, Ontario · Engagement: 7 weeks, fixed fee
Amount reversed$121,000
ObjectionAllowed in full
Account balanceNil
The situation — A construction firm with union and non-union crews, Mississauga, Ontario
A construction firm with union and non-union crews in Mississauga, Ontario had been reassessed for $121,000. 24 days were left on the objection deadline. The reassessment rested on remittances still going out monthly after the business had moved to the accelerated threshold.
What we did for A construction firm with union and non-union crews, Mississauga, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result — A construction firm with union and non-union crews, Mississauga, Ontario
The appeals officer allowed the objection in full. $121,000 was reversed and the account returned to a nil balance.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $107,000 Penalty Avoided — Higher-Frequency Remitter, Winnipeg
Client: An employer whose remittance frequency moved up a threshold · Where: Winnipeg, Manitoba · Engagement: 7 weeks, fixed fee
Penalty avoided$107,000
Turnaround7 weeks
FiledOn time
The situation — An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
An employer whose remittance frequency moved up a threshold in Winnipeg, Manitoba came to us 7 weeks before its filing deadline. The file came with company vehicles used personally with no logbook and no taxable benefit reported. A late filing would have triggered a penalty of roughly $107,000 before interest.
What we did for An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
We worked backwards from the deadline. 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 prioritised the items that actually gated the filing and deferred everything that did not.
The result — An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
The return was filed on time and complete. The $107,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Records and systems rebuilt
Month-End Close Cut From 12 Weeks To 6 Days — Two-Province Retail Chain, Halifax
Client: A retail chain across two provinces · Where: Halifax, Nova Scotia · Engagement: 5 weeks, fixed fee
Close time before12 weeks
Close time after6 days
Year-endReview, not rebuild
The situation — A retail chain across two provinces, Halifax, Nova Scotia
The accounting file at a retail chain across two provinces in Halifax, Nova Scotia had a weak foundation. It was built on a director facing a personal assessment for unremitted source deductions. The year-end had taken 12 weeks each of the last three years.
What we did for A retail chain across two provinces, Halifax, Nova Scotia
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 retail chain across two provinces, Halifax, Nova Scotia
The file reconciles. Month-end closes in 6 days instead of 12 weeks, and the year-end is a review rather than a reconstruction.
Case Study 5 · Cash and remittance control
Instalments Rebased, $24,000 Of Cash Returned To The Business — Company-Vehicle Employer, Burnaby
Client: An employer providing company vehicles · Where: Burnaby, British Columbia · Engagement: 5 weeks, fixed fee
Cash returned$24,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — An employer providing company vehicles, Burnaby, British Columbia
An employer providing company vehicles in Burnaby, British Columbia 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 $24,000 of cash.
What we did for An employer providing company vehicles, Burnaby, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, 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.
The result — An employer providing company vehicles, Burnaby, British Columbia
$24,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Planning that cut the bill
$64,000 Cut From The Annual Tax Bill — Stock-Option Tech Team, Kitchener
Client: A growing tech team with stock options · Where: Kitchener, Ontario · Engagement: 5 weeks, fixed fee
First-year saving$64,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A growing tech team with stock options, Kitchener, Ontario
A growing tech team with stock options in Kitchener, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left long-term contractors who met every test for employment on the table.
What we did for A growing tech team with stock options, Kitchener, Ontario
We modelled the current position against the alternatives before changing anything. Then we paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued.
The result — A growing tech team with stock options, Kitchener, Ontario
The change saved $64,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
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.
