6 worked Outsourced 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 outsourced payroll services work, not a specific client's file.
The situation — A home-care agency, Guelph, Ontario
A home-care agency in Guelph, Ontario was carrying a director facing a personal assessment for unremitted source deductions, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A home-care agency, Guelph, Ontario
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 home-care agency, Guelph, Ontario
The structure now matches the business. Annual saving of $24,500, and the reorganisation itself was tax-neutral.
Case Study 2 · Objection and relief
Notice Of Objection Allowed In Full, $37,500 Reversed — Manufacturing Employer, Victoria
Client: A 30-employee manufacturer · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Amount reversed$37,500
ObjectionAllowed in full
Account balanceNil
The situation — A 30-employee manufacturer, Victoria, British Columbia
A 30-employee manufacturer in Victoria, British Columbia had been reassessed for $37,500 and had 13 days 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 30-employee manufacturer, Victoria, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder, 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 — A 30-employee manufacturer, Victoria, British Columbia
The appeals officer allowed the objection in full. $37,500 was reversed and the account returned to a nil balance.
Client: An employer providing company vehicles · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Penalty cancelled$68,000
Relief applicationGranted
ReturnAccepted as filed
The situation — An employer providing company vehicles, Burnaby, British Columbia
An employer providing company vehicles in Burnaby, British Columbia had already missed one deadline and was about to miss a second. Behind it sat an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year, and a penalty of $68,000 was accruing.
What we did for An employer providing company vehicles, Burnaby, British Columbia
We split the work into what had to happen before the deadline and what could follow it, then reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result — An employer providing company vehicles, Burnaby, British Columbia
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $68,000 of the penalty already assessed on the earlier year.
Case Study 4 · Records and systems rebuilt
Books Rebuilt From Source, $5,800 In Unclaimed Input Tax Found — Contractor-Paid Clinic, Hamilton
Client: A clinic paying its associates as contractors · Where: Hamilton, Ontario · Engagement: 10 weeks, fixed fee
Unclaimed tax found$5,800
Records rebuilt13 months
ProcessDocumented
The situation — A clinic paying its associates as contractors, Hamilton, Ontario
A clinic paying its associates as contractors in Hamilton, Ontario could not answer basic questions about its own numbers, because T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty sat between the bank statements and the ledger.
What we did for A clinic paying its associates as contractors, Hamilton, Ontario
We 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, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A clinic paying its associates as contractors, Hamilton, Ontario
Records rebuilt and reconciled, $5,800 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Cash and remittance control
Remittance Schedule Corrected, $75,000 Refunded — Dental Practice, Vancouver
Client: A dental practice · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Overpayment refunded$75,000
Late remittances sinceZero
ScheduleAutomated
The situation — A dental practice, Vancouver, British Columbia
Remittances at a dental practice in Vancouver, British Columbia were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat remittances still going out monthly after the business had moved to the accelerated threshold.
What we did for A dental practice, Vancouver, British Columbia
We moved the account to the correct remitter frequency, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A dental practice, Vancouver, British Columbia
Penalties stopped from the following remittance onwards, and $75,000 of overpaid instalments was refunded.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $18,000 Across Corporate And Personal Returns — Security Services Contractor, Kelowna
Client: A security services contractor · Where: Kelowna, British Columbia · Engagement: 5 weeks, fixed fee
Combined saving$18,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A security services contractor, Kelowna, British Columbia
Nothing was wrong at a security services contractor in Kelowna, British Columbia — the filings were on time and accurate. What they were not was planned. Long-term contractors who met every test for employment had never been reviewed.
What we did for A security services contractor, Kelowna, British Columbia
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, and 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 security services contractor, Kelowna, British Columbia
$18,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
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.
