6 Payroll Internal Controls 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 internal controls review work, not a general example.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $97,000 Across 7 Open Years — Growing Tech Team, Victoria
Client: A growing tech team with stock options · Where: Victoria, British Columbia · Engagement: 11 weeks, fixed fee
Recovered$97,000
Open years claimed7
Ongoing trackingIn place
The situation
An incentive review at a growing tech team with stock options in Victoria, British Columbia started from a simple question: what has never been claimed? The answer ran to 7 years, driven by remittances still going out monthly after the business had moved to the accelerated threshold.
What we did
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $97,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 2 · Objection and relief
$45,000 Of Penalties And Interest Cancelled On Relief — Retail Chain Across Two, Surrey
Client: A retail chain across two provinces · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$45,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $45,000 landed at a retail chain across two provinces in Surrey, British Columbia following a desk review. The auditor had not seen the records behind remittances still going out monthly after the business had moved to the accelerated threshold.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, then set out the legislative basis for the position alongside the documents supporting it.
The result
$45,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · Planning that cut the bill
$69,000 Saved By Correcting What Prior Filings Had Missed — Construction Firm with Union, Lethbridge
Client: A construction firm with union and non-union crews · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Saving identified$69,000
RecurringYes
Positions documentedAll
The situation
A construction firm with union and non-union crews in Lethbridge, Alberta asked for a second opinion on payroll internal controls 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 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 result
First-year saving of $69,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 4 · Sale and succession
Intergenerational Transfer Completed With $445,000 Deferred — Home-Care Agency, Regina
A generational transfer at a home-care agency in Regina, Saskatchewan had been discussed for years without a plan. A minute book with no resolutions behind a decade of dividends meant the transfer as contemplated would have been fully taxable.
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, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$445,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 5 · Deadline rescue
$95,000 Late-Filing Penalty Cancelled On Relief Application — Restaurant with Heavy Seasonal, Ottawa
Client: A restaurant with heavy seasonal turnover · Where: Ottawa, Ontario · Engagement: 6 weeks, fixed fee
Penalty cancelled$95,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A restaurant with heavy seasonal turnover in Ottawa, Ontario had already missed one deadline and was about to miss a second. Behind it sat company vehicles used personally with no logbook and no taxable benefit reported, and a penalty of $95,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $95,000 of the penalty already assessed on the earlier year.
Case Study 6 · Scaling without breaking
Scaled To 56 Staff With $104,000 Of Working Capital Freed — 30-Employee Manufacturer, Barrie
A 30-employee manufacturer in Barrie, Ontario was growing fast — headcount to 56 in eighteen months — and the back office had not kept up. Long-term contractors who met every test for employment was the first thing to break.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 56 staff with no missed remittance and no late filing. $104,000 of working capital was freed in the process.
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.
