6 Payroll Processing 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 processing services work, not a general example.
Case Study 1 · Backlog brought current
$57,000 Of Arbitrary Assessments Vacated After 4 Years — Retail Chain Across Two, Winnipeg
Client: A retail chain across two provinces · Where: Winnipeg, Manitoba · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$57,000
Years brought current4
Account statusCurrent
The situation
4 years of unfiled returns had turned into notional assessments at a retail chain across two provinces in Winnipeg, Manitoba, with remittances still going out monthly after the business had moved to the accelerated threshold underneath. Collections had already started.
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 filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 4 years were accepted as filed. $57,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Client: A dental practice · Where: Guelph, Ontario · Engagement: 9 weeks, fixed fee
Annual saving$64,000
ReorganisationTax-neutral
StructureMatches operations
The situation
A dental practice in Guelph, Ontario was carrying long-term contractors who met every test for employment, 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 $64,000, and the reorganisation itself was tax-neutral.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $126,000 Vacated — Home-Care Agency, Regina
A home-care agency in Regina, Saskatchewan was carrying $126,000 of penalties and interest arising from company vehicles used personally with no logbook and no taxable benefit reported, much of it accumulated during a period the CRA itself had delayed.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $126,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Deadline rescue
$40,000 Late-Filing Penalty Cancelled On Relief Application — Security Services Contractor, Hamilton
A security services contractor in Hamilton, Ontario had already missed one deadline and was about to miss a second. Behind it sat T4s that did not agree to the payroll register or the general ledger, and a penalty of $40,000 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 $40,000 of the penalty already assessed on the earlier year.
Case Study 5 · Records and systems rebuilt
Month-End Close Cut From 5 Weeks To 4 Days — 30-Employee Manufacturer, Lethbridge
Client: A 30-employee manufacturer · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Close time before5 weeks
Close time after4 days
Year-endReview, not rebuild
The situation
The accounting file at a 30-employee manufacturer in Lethbridge, Alberta was built on a director facing a personal assessment for unremitted source deductions. The year-end had taken 5 weeks each of the last three years.
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 and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 4 days instead of 5 weeks, and the year-end is a review rather than a reconstruction.
Case Study 6 · Cash and remittance control
$150,000 Of Working Capital Freed From The Tax Cycle — Growing Tech Team, Kitchener
Client: A growing tech team with stock options · Where: Kitchener, Ontario · Engagement: 6 weeks, fixed fee
Working capital freed$150,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A growing tech team with stock options in Kitchener, Ontario 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 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 built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$150,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
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.
