6 worked Payroll Internal Controls 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 internal controls review work, not a specific client's file.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $97,000 Across 7 Open Years — Stock-Option 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 — A growing tech team with stock options, Victoria, British Columbia
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. It was driven by T4s that did not agree to the payroll register or the general ledger.
What we did for A growing tech team with stock options, Victoria, British Columbia
We wrote each pay code against its income tax, CPP and EI treatment. That way, a new benefit could not reach the payroll without a decision on how it was withheld. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A growing tech team with stock options, Victoria, British Columbia
The credits produced $97,000 across the open years. 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 — Dental Practice, Surrey
Client: A dental practice · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Penalties and interest cancelled$45,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A dental practice, Surrey, British Columbia
An assessment of $45,000 landed at a dental practice in Surrey, British Columbia following a desk review. It turned on T4s that did not agree to the payroll register or the general ledger. The auditor had not seen the records behind it.
What we did for A dental practice, Surrey, British Columbia
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. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A dental practice, Surrey, British Columbia
$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 — Higher-Frequency Remitter, Lethbridge
Client: An employer whose remittance frequency moved up a threshold · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Saving identified$69,000
RecurringYes
Positions documentedAll
The situation — An employer whose remittance frequency moved up a threshold, Lethbridge, Alberta
An employer whose remittance frequency moved up a threshold in Lethbridge, Alberta asked for a second opinion on payroll internal controls review. That followed three years of rising tax. The review found remittances still going out monthly after the business had moved to the accelerated threshold.
What we did for An employer whose remittance frequency moved up a threshold, Lethbridge, Alberta
We built the comparison first: current structure against two alternatives. Then we reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips.
The result — An employer whose remittance frequency moved up a threshold, Lethbridge, Alberta
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 — Manufacturing Employer, Regina
The situation — A 30-employee manufacturer, Regina, Saskatchewan
A generational transfer at a 30-employee manufacturer 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 for A 30-employee manufacturer, Regina, Saskatchewan
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 sequenced the steps so each one was complete and documented before the next depended on it.
The result — A 30-employee manufacturer, Regina, Saskatchewan
$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 — Mixed-Crew Construction Firm, Ottawa
Client: A construction firm with union and non-union crews · Where: Ottawa, Ontario · Engagement: 6 weeks, fixed fee
Penalty cancelled$95,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A construction firm with union and non-union crews, Ottawa, Ontario
A construction firm with union and non-union crews in Ottawa, Ontario had already missed one deadline and was about to miss a second. Behind it sat long-term contractors who met every test for employment. A penalty of $95,000 was accruing.
What we did for A construction firm with union and non-union crews, Ottawa, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then 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.
The result — A construction firm with union and non-union crews, Ottawa, Ontario
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 — Security Services Contractor, Barrie
The situation — A security services contractor, Barrie, Ontario
A security services contractor in Barrie, Ontario was growing fast, with headcount reaching 56 in eighteen months. The back office had not kept up. A bonus accrued to bring the year-end tax bill down and still unpaid more than a year later was the first thing to break.
What we did for A security services contractor, Barrie, Ontario
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A security services contractor, Barrie, Ontario
The business reached 56 staff with no missed remittance and no late filing. $104,000 of working capital was freed in the process.
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.
