6 worked Payroll Correction Services 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 correction services work, not a specific client's file.
Case Study 1 · CRA review defended
$106,000 Reassessment Reduced To Nil On Review — Seasonal Landscaping Employer, 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 landscaping company with seasonal staff, Brampton, Ontario
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 for A landscaping company with seasonal staff, Brampton, Ontario
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 — A landscaping company with seasonal staff, Brampton, Ontario
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 — Multi-Province Driver Fleet, 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, Hamilton, Ontario
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 long-term contractors who met every test for employment already in the file.
What we did for A logistics operator with drivers in three provinces, Hamilton, Ontario
We paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued 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 — A logistics operator with drivers in three provinces, Hamilton, Ontario
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 — Higher-Frequency Remitter, Calgary
Client: An employer whose remittance frequency moved up a threshold · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
First-year saving$14,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — An employer whose remittance frequency moved up a threshold, Calgary, Alberta
An employer whose remittance frequency moved up a threshold in Calgary, Alberta was compliant but paying more than it needed to. The prior year had been filed correctly and still left T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty on the table.
What we did for An employer whose remittance frequency moved up a threshold, Calgary, Alberta
We modelled the current position against the alternatives before changing anything, then corrected the CPP and EI withholding for the balance of the year and set the employee up to recover the over-deduction on the personal return.
The result — An employer whose remittance frequency moved up a threshold, Calgary, Alberta
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 — Part-Time Program Employer, Moncton
Client: A charity with part-time program staff · 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 charity with part-time program staff, Moncton, New Brunswick
A charity with part-time program staff in Moncton, New Brunswick was profitable on paper and short of cash every month. A bonus accrued to bring the year-end tax bill down and still unpaid more than a year later explained most of the gap.
What we did for A charity with part-time program staff, Moncton, New Brunswick
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A charity with part-time program staff, Moncton, New Brunswick
$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 — High-Turnover Restaurant, Regina
Client: A restaurant with heavy seasonal turnover · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Unclaimed tax found$18,500
Records rebuilt29 months
ProcessDocumented
The situation — A restaurant with heavy seasonal turnover, Regina, Saskatchewan
A restaurant with heavy seasonal turnover 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 for A restaurant with heavy seasonal turnover, Regina, Saskatchewan
We wrote each pay code against its income tax, CPP and EI treatment, so a new benefit could not reach the payroll without a decision on how it was withheld, then documented the process so the work does not depend on any one person remembering how it was done.
The result — A restaurant with heavy seasonal turnover, Regina, Saskatchewan
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 — Mixed-Crew Construction Firm, Surrey
Client: A construction firm with union and non-union crews · 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 — A construction firm with union and non-union crews, Surrey, British Columbia
With the deadline for payroll correction services weeks away, a construction firm with union and non-union crews in Surrey, British Columbia was carrying company vehicles used personally with no logbook and no taxable benefit reported. The exposure if the date slipped was around $92,000.
What we did for A construction firm with union and non-union crews, Surrey, British Columbia
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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A construction firm with union and non-union crews, Surrey, British Columbia
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, Founder and Tax Accountant. 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.
