6 worked Payroll Compliance Review 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 compliance review work, not a specific client's file.
Case Study 1 · Backlog brought current
4 Years Filed, $12,500 Removed From The Assessed Balance — Contractor-Paid Clinic, Saskatoon
Client: A clinic paying its associates as contractors · Where: Saskatoon, Saskatchewan · Engagement: 4 weeks, fixed fee
Years filed4
Assessed balance removed$12,500
CollectionsStopped
The situation — A clinic paying its associates as contractors, Saskatoon, Saskatchewan
A clinic paying its associates as contractors in Saskatoon, Saskatchewan had not filed for 4 years. The CRA had issued arbitrary assessments. The business was carrying remittances still going out monthly after the business had moved to the accelerated threshold. That came on top of a growing interest balance.
What we did for A clinic paying its associates as contractors, Saskatoon, Saskatchewan
We started with the oldest year and worked forward so each year's closing balances fed the next. 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 filed the years in sequence rather than all at once.
The result — A clinic paying its associates as contractors, Saskatoon, Saskatchewan
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $12,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · Planning that cut the bill
$68,000 Saved By Correcting What Prior Filings Had Missed — Security Services Contractor, Surrey
Client: A security services contractor · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Saving identified$68,000
RecurringYes
Positions documentedAll
The situation — A security services contractor, Surrey, British Columbia
A security services contractor in Surrey, British Columbia asked for a second opinion on payroll compliance review. That followed three years of rising tax. The review found company vehicles used personally with no logbook and no taxable benefit reported.
What we did for A security services contractor, Surrey, British Columbia
We built the comparison first: current structure against two alternatives. Then we paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued.
The result — A security services contractor, Surrey, British Columbia
First-year saving of $68,000, with the same benefit recurring. Every position taken is documented and supported in the file.
The situation — A home-care agency, Winnipeg, Manitoba
The structure at a home-care agency in Winnipeg, Manitoba needed fixing. The file was carrying a director facing a personal assessment for unremitted source deductions. 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, Winnipeg, Manitoba
We worked with the client's lawyer. Together, 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 also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A home-care agency, Winnipeg, Manitoba
The structure now matches the business. Annual saving of $24,000, and the reorganisation itself was tax-neutral.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $112,000 Of Cash Released — Company-Vehicle Employer, Edmonton
Client: An employer providing company vehicles · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Cash released$112,000
New registrationsComplete on day one
Compliance gapsNone
The situation — An employer providing company vehicles, Edmonton, Alberta
Revenue at an employer providing company vehicles in Edmonton, Alberta was up sharply and cash was tighter than ever. Underneath it sat an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year.
What we did for An employer providing company vehicles, Edmonton, Alberta
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. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — An employer providing company vehicles, Edmonton, Alberta
$112,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · Objection and relief
$78,000 Of Penalties And Interest Cancelled On Relief — Dental Practice, Vancouver
Client: A dental practice · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$78,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A dental practice, Vancouver, British Columbia
An assessment of $78,000 landed at a dental practice in Vancouver, British Columbia following a desk review. It turned on long-term contractors who met every test for employment. The auditor had not seen the records behind it.
What we did for A dental practice, Vancouver, British Columbia
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A dental practice, Vancouver, British Columbia
$78,000 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 · CRA review defended
$46,000 Reassessment Reduced To Nil On Review — Two-Province Retail Chain, Toronto
Client: A retail chain across two provinces · Where: Toronto, Ontario · Engagement: 11 weeks, fixed fee
Reassessment reduced toNil
Tax protected$46,000
Prior filingsUndisturbed
The situation — A retail chain across two provinces, Toronto, Ontario
A review notice arrived at a retail chain across two provinces in Toronto, Ontario, covering payroll compliance review for two tax years. The auditor's working position was an adjustment of $46,000. It was driven by T4s that did not agree to the payroll register or the general ledger.
What we did for A retail chain across two provinces, Toronto, Ontario
Rather than negotiate, we rebuilt the record. We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A retail chain across two provinces, Toronto, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $46,000 and leaving the prior filings undisturbed.
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.
