6 Payroll Correction Services 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 correction services work, not a general example.
Case Study 1 · CRA review defended
$106,000 Reassessment Reduced To Nil On Review — Landscaping Company with Seasonal, Brampton
Client: A landscaping company with seasonal staff · Where: Brampton, Ontario · Engagement: 6 weeks, fixed fee
Reassessment reduced toNil
Tax protected$106,000
Prior filingsUndisturbed
The situation
A review notice arrived at a landscaping company with seasonal staff in Brampton, Ontario covering payroll correction services for two tax years. The auditor's working position was an adjustment of $106,000, 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 reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips 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 $106,000 and leaving the prior filings undisturbed.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $20,500 Freed — Logistics Operator with Drivers, Hamilton
Client: A logistics operator with drivers in three provinces · Where: Hamilton, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$20,500
Compliance failuresNone
ReportingMonthly
The situation
A logistics operator with drivers in three provinces in Hamilton, Ontario was opening in a second province — different filing obligations, a different payroll regime, and company vehicles used personally with no logbook and no taxable benefit reported already in the file.
What we did
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 put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $20,500 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Planning that cut the bill
$14,000 Cut From The Annual Tax Bill — Restaurant with Heavy Seasonal, Calgary
Client: A restaurant with heavy seasonal turnover · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
First-year saving$14,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A restaurant with heavy seasonal turnover in Calgary, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly and still left long-term contractors who met every test for employment on the table.
What we did
We modelled the current position against the alternatives before changing anything, then 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.
The result
The change saved $14,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 4 · Cash and remittance control
$137,000 Of Working Capital Freed From The Tax Cycle — Construction Firm with Union, Moncton
Client: A construction firm with union and non-union crews · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Working capital freed$137,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A construction firm with union and non-union crews in Moncton, New Brunswick 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
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$137,000 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 5 · Records and systems rebuilt
Books Rebuilt From Source, $18,500 In Unclaimed Input Tax Found — Growing Tech Team, Regina
Client: A growing tech team with stock options · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Unclaimed tax found$18,500
Records rebuilt29 months
ProcessDocumented
The situation
A growing tech team with stock options in Regina, Saskatchewan could not answer basic questions about its own numbers, because a director facing a personal assessment for unremitted source deductions sat between the bank statements and the ledger.
What we did
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $18,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 6 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $92,000 — Dental Practice, Surrey
Client: A dental practice · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$92,000
Filed with17 days to spare
Next yearPapers ready
The situation
With the deadline for payroll correction services weeks away, a dental practice in Surrey, British Columbia was carrying T4s that did not agree to the payroll register or the general ledger. The exposure if the date slipped was around $92,000.
What we did
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 17 days to spare. $92,000 in late-filing penalties avoided, and the working papers are ready for the following year.
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.
