6 worked Payroll Processing 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 processing services work, not a specific client's file.
Case Study 1 · Backlog brought current
$57,000 Of Arbitrary Assessments Vacated After 4 Years — Security Services Contractor, Winnipeg
The situation — A security services contractor, Winnipeg, Manitoba
4 years of unfiled returns had turned into notional assessments at a security services contractor in Winnipeg, Manitoba, with a director facing a personal assessment for unremitted source deductions underneath. Collections had already started.
What we did for A security services contractor, Winnipeg, Manitoba
We paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A security services contractor, Winnipeg, Manitoba
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 construction firm with union and non-union crews · Where: Guelph, Ontario · Engagement: 9 weeks, fixed fee
Annual saving$64,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A construction firm with union and non-union crews, Guelph, Ontario
A construction firm with union and non-union crews 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 for A construction firm with union and non-union crews, Guelph, Ontario
Working with the client's lawyer, we reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips and prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A construction firm with union and non-union crews, Guelph, Ontario
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 — Manufacturing Employer, Regina
The situation — A 30-employee manufacturer, Regina, Saskatchewan
A 30-employee manufacturer in Regina, Saskatchewan was carrying $126,000 of penalties and interest arising from an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year, much of it accumulated during a period the CRA itself had delayed.
What we did for A 30-employee manufacturer, Regina, Saskatchewan
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 — A 30-employee manufacturer, Regina, Saskatchewan
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 — Higher-Frequency Remitter, Hamilton
Client: An employer whose remittance frequency moved up a threshold · Where: Hamilton, Ontario · Engagement: 7 weeks, fixed fee
Penalty cancelled$40,000
Relief applicationGranted
ReturnAccepted as filed
The situation — An employer whose remittance frequency moved up a threshold, Hamilton, Ontario
An employer whose remittance frequency moved up a threshold 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 for An employer whose remittance frequency moved up a threshold, Hamilton, Ontario
We split the work into what had to happen before the deadline and what could follow it, 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 — An employer whose remittance frequency moved up a threshold, Hamilton, Ontario
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 — Dental Practice, Lethbridge
Client: A dental practice · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Close time before5 weeks
Close time after4 days
Year-endReview, not rebuild
The situation — A dental practice, Lethbridge, Alberta
The accounting file at a dental practice in Lethbridge, Alberta was built on remittances still going out monthly after the business had moved to the accelerated threshold. The year-end had taken 5 weeks each of the last three years.
What we did for A dental practice, Lethbridge, Alberta
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 — A dental practice, Lethbridge, Alberta
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 — Stock-Option 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, Kitchener, Ontario
A growing tech team with stock options in Kitchener, Ontario 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 growing tech team with stock options, Kitchener, Ontario
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 and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A growing tech team with stock options, Kitchener, Ontario
$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, 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.
