6 Payroll Compliance Review tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to payroll compliance review work, not a general example.
Case Study 1 · Backlog brought current
4 Years Filed, $12,500 Removed From The Assessed Balance — Home-Care Agency, Saskatoon
A home-care agency in Saskatoon, Saskatchewan had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying T4s that did not agree to the payroll register or the general ledger on top of a growing interest balance.
What we did
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, caught up the arrears, and filed a taxpayer relief request that cancelled the bulk of the penalty, filing the years in sequence rather than all at once.
The result
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 — Landscaping Company with Seasonal, Surrey
Client: A landscaping company with seasonal staff · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Saving identified$68,000
RecurringYes
Positions documentedAll
The situation
A landscaping company with seasonal staff in Surrey, British Columbia asked for a second opinion on payroll compliance review after three years of rising tax. The review found a director facing a personal assessment for unremitted source deductions.
What we did
We built the comparison first — current structure against two alternatives — and then reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result
First-year saving of $68,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 3 · Structure rebuilt
Holding Structure Added, $24,000 Saved Annually — Construction Firm with Union, Winnipeg
Client: A construction firm with union and non-union crews · Where: Winnipeg, Manitoba · Engagement: 3 weeks, fixed fee
Annual saving$24,000
ReorganisationTax-neutral
StructureMatches operations
The situation
A construction firm with union and non-union crews in Winnipeg, Manitoba was carrying remittances still going out monthly after the business had moved to the accelerated threshold, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we reviewed each contractor against the CRA’s control and integration tests, converted those who met the employment tests, and priced the transition before it was forced by a ruling and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
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 — Dental Practice, Edmonton
Client: A dental practice · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Cash released$112,000
New registrationsComplete on day one
Compliance gapsNone
The situation
Revenue at a dental practice in Edmonton, Alberta was up sharply and cash was tighter than ever. Underneath it sat long-term contractors who met every test for employment.
What we did
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$112,000 of cash was released from the working capital cycle, and 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 — Retail Chain Across Two, Vancouver
Client: A retail chain across two provinces · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$78,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $78,000 landed at a retail chain across two provinces in Vancouver, British Columbia following a desk review. The auditor had not seen the records behind company vehicles used personally with no logbook and no taxable benefit reported.
What we did
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 set out the legislative basis for the position alongside the documents supporting it.
The result
$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 — Logistics Operator with Drivers, Toronto
Client: A logistics operator with drivers in three provinces · Where: Toronto, Ontario · Engagement: 11 weeks, fixed fee
Reassessment reduced toNil
Tax protected$46,000
Prior filingsUndisturbed
The situation
A review notice arrived at a logistics operator with drivers in three provinces in Toronto, Ontario covering payroll compliance review for two tax years. The auditor's working position was an adjustment of $46,000, driven by T4s that did not agree to the payroll register or the general ledger.
What we did
Rather than negotiate, we rebuilt the record. We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $46,000 and leaving the prior filings undisturbed.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
