6 worked Payroll Audit Support 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 payroll audit support work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$57,000 Saved By Correcting What Prior Filings Had Missed — Part-Time Program Employer, Calgary
Client: A charity with part-time program staff · Where: Calgary, Alberta · Engagement: 6 weeks, fixed fee
Saving identified$57,000
RecurringYes
Positions documentedAll
The situation — A charity with part-time program staff, Calgary, Alberta
A charity with part-time program staff in Calgary, Alberta asked for a second opinion on payroll audit support. That followed three years of rising tax. The review found T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty.
What we did for A charity with part-time program staff, Calgary, Alberta
We built the comparison first: current structure against two alternatives. Then 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 result — A charity with part-time program staff, Calgary, Alberta
First-year saving of $57,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 2 · Missed incentive claimed
Incentive Review Recovered $108,000 Across 6 Open Years — Seasonal Landscaping Employer, Ottawa
Client: A landscaping company with seasonal staff · Where: Ottawa, Ontario · Engagement: 6 weeks, fixed fee
Recovered$108,000
Open years claimed6
Ongoing trackingIn place
The situation — A landscaping company with seasonal staff, Ottawa, Ontario
An incentive review at a landscaping company with seasonal staff in Ottawa, Ontario started from a simple question: what has never been claimed? The answer ran to 6 years. It was driven by 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, Ottawa, Ontario
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A landscaping company with seasonal staff, Ottawa, Ontario
The credits produced $108,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Client: A restaurant with heavy seasonal turnover · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Annual saving$68,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A restaurant with heavy seasonal turnover, Halifax, Nova Scotia
The structure at a restaurant with heavy seasonal turnover in Halifax, Nova Scotia needed fixing. The file was carrying long-term contractors who met every test for employment. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A restaurant with heavy seasonal turnover, Halifax, Nova Scotia
We worked with the client's lawyer. Together, 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. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A restaurant with heavy seasonal turnover, Halifax, Nova Scotia
The structure now matches the business. Annual saving of $68,000, and the reorganisation itself was tax-neutral.
Case Study 4 · Records and systems rebuilt
Books Rebuilt From Source, $13,500 In Unclaimed Input Tax Found — Multi-Province Driver Fleet, Brampton
Client: A logistics operator with drivers in three provinces · Where: Brampton, Ontario · Engagement: 10 weeks, fixed fee
Unclaimed tax found$13,500
Records rebuilt30 months
ProcessDocumented
The situation — A logistics operator with drivers in three provinces, Brampton, Ontario
A logistics operator with drivers in three provinces in Brampton, Ontario could not answer basic questions about its own numbers. An employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year sat between the bank statements and the ledger.
What we did for A logistics operator with drivers in three provinces, Brampton, Ontario
We paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A logistics operator with drivers in three provinces, Brampton, Ontario
Records rebuilt and reconciled, $13,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 5 · Scaling without breaking
Second-Province Expansion Handled, $63,000 Of Cash Released — Mixed-Crew Construction Firm, Victoria
Client: A construction firm with union and non-union crews · Where: Victoria, British Columbia · Engagement: 3 weeks, fixed fee
Cash released$63,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A construction firm with union and non-union crews, Victoria, British Columbia
Revenue at a construction firm with union and non-union crews in Victoria, British Columbia was up sharply and cash was tighter than ever. Underneath it sat T4s that did not agree to the payroll register or the general ledger.
What we did for A construction firm with union and non-union crews, Victoria, British Columbia
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A construction firm with union and non-union crews, Victoria, British Columbia
$63,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 6 · Sale and succession
Share Sale Restructured, $415,000 Less Tax On Closing — Higher-Frequency Remitter, Kelowna
Client: An employer whose remittance frequency moved up a threshold · Where: Kelowna, British Columbia · Engagement: 9 weeks, fixed fee
Tax saved on closing$415,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — An employer whose remittance frequency moved up a threshold, Kelowna, British Columbia
An employer whose remittance frequency moved up a threshold in Kelowna, British Columbia was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares. That would have reduced the price or killed the deal outright.
What we did for An employer whose remittance frequency moved up a threshold, Kelowna, British Columbia
We cleaned up the historical file. We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — An employer whose remittance frequency moved up a threshold, Kelowna, British Columbia
The deal closed at the agreed price. $415,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
