6 worked Payroll Cleanup 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 cleanup work, not a specific client's file.
Case Study 1 · Cash and remittance control
$101,000 Of Working Capital Freed From The Tax Cycle — Security Services Contractor, Vancouver
Client: A security services contractor · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Working capital freed$101,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A security services contractor, Vancouver, British Columbia
A security services contractor in Vancouver, British Columbia was profitable on paper and short of cash every month. Remittances still going out monthly after the business had moved to the accelerated threshold explained most of the gap.
What we did for A security services contractor, Vancouver, British Columbia
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 also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A security services contractor, Vancouver, British Columbia
$101,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 2 · Scaling without breaking
Scaled To 64 Staff With $58,000 Of Working Capital Freed — Two-Province Retail Chain, Kelowna
Client: A retail chain across two provinces · Where: Kelowna, British Columbia · Engagement: 11 weeks, fixed fee
Headcount reached64
Working capital freed$58,000
Missed deadlinesZero
The situation — A retail chain across two provinces, Kelowna, British Columbia
A retail chain across two provinces in Kelowna, British Columbia was growing fast, with headcount reaching 64 in eighteen months. The back office had not kept up. A bonus accrued to bring the year-end tax bill down and still unpaid more than a year later was the first thing to break.
What we did for A retail chain across two provinces, Kelowna, British Columbia
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 built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A retail chain across two provinces, Kelowna, British Columbia
The business reached 64 staff with no missed remittance and no late filing. $58,000 of working capital was freed in the process.
Case Study 3 · Missed incentive claimed
Incentive Review Recovered $126,000 Across 6 Open Years — Home-Care Agency, Red Deer
Client: A home-care agency · Where: Red Deer, Alberta · Engagement: 11 weeks, fixed fee
Recovered$126,000
Open years claimed6
Ongoing trackingIn place
The situation — A home-care agency, Red Deer, Alberta
An incentive review at a home-care agency in Red Deer, Alberta started from a simple question: what has never been claimed? The answer ran to 6 years. It was driven by remittances still going out monthly after the business had moved to the accelerated threshold.
What we did for A home-care agency, Red Deer, Alberta
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 home-care agency, Red Deer, Alberta
The credits produced $126,000 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.
Case Study 4 · Backlog brought current
Collections Halted And $82,000 Cut From A 3-Year Backlog — Manufacturing Employer, London
The situation — A 30-employee manufacturer, London, Ontario
By the time a 30-employee manufacturer in London, Ontario called, 3 years were outstanding. The CRA had assessed on estimates. Underneath it sat T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty.
What we did for A 30-employee manufacturer, London, Ontario
We reconstructed the records year by year. 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. Each filing replaced an arbitrary assessment with a real one.
The result — A 30-employee manufacturer, London, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $82,000, and a relief application addressed part of the accumulated interest.
Case Study 5 · Objection and relief
$139,000 Of Penalties And Interest Cancelled On Relief — Company-Vehicle Employer, Winnipeg
Client: An employer providing company vehicles · Where: Winnipeg, Manitoba · Engagement: 11 weeks, fixed fee
Penalties and interest cancelled$139,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — An employer providing company vehicles, Winnipeg, Manitoba
An assessment of $139,000 landed at an employer providing company vehicles in Winnipeg, Manitoba following a desk review. It turned on a director facing a personal assessment for unremitted source deductions. The auditor had not seen the records behind it.
What we did for An employer providing company vehicles, Winnipeg, Manitoba
We paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued. We then set out the legislative basis for the position alongside the documents supporting it.
The result — An employer providing company vehicles, Winnipeg, Manitoba
$139,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Records and systems rebuilt
21 Months Reconciled And $12,000 Of Input Tax Recovered — Contractor-Paid Clinic, Calgary
Client: A clinic paying its associates as contractors · Where: Calgary, Alberta · Engagement: 8 weeks, fixed fee
Months reconciled21
Input tax recovered$12,000
Close time6 days
The situation — A clinic paying its associates as contractors, Calgary, Alberta
Nothing reconciled at a clinic paying its associates as contractors in Calgary, Alberta. Every filing started with 21 months of cleanup. The file was carrying long-term contractors who met every test for employment.
What we did for A clinic paying its associates as contractors, Calgary, Alberta
We rebuilt from source rather than correcting on top of the existing file. We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. Then we set the routine that keeps it clean.
The result — A clinic paying its associates as contractors, Calgary, Alberta
21 months reconciled to the bank. The close now takes 6 days, and $12,000 of previously unclaimable input tax was recovered in the process.
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.
