6 worked Payroll Reconciliation 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 reconciliation work, not a specific client's file.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $13,000 Across 7 Open Years — Multi-Province Driver Fleet, Victoria
Client: A logistics operator with drivers in three provinces · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Recovered$13,000
Open years claimed7
Ongoing trackingIn place
The situation — A logistics operator with drivers in three provinces, Victoria, British Columbia
An incentive review at a logistics operator with drivers in three provinces 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 logistics operator with drivers in three provinces, 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 logistics operator with drivers in three provinces, Victoria, British Columbia
The credits produced $13,000 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 · CRA review defended
$100,000 Proposed Adjustment Withdrawn In Full — High-Turnover Restaurant, Saskatoon
Client: A restaurant with heavy seasonal turnover · Where: Saskatoon, Saskatchewan · Engagement: 5 weeks, fixed fee
Adjustment withdrawn$100,000
File closed in5 weeks
Penalties assessedNone
The situation — A restaurant with heavy seasonal turnover, Saskatoon, Saskatchewan
A restaurant with heavy seasonal turnover in Saskatoon, Saskatchewan received a proposal letter opening a review of payroll reconciliation. The CRA had identified remittances still going out monthly after the business had moved to the accelerated threshold. It proposed an adjustment of $100,000, with 30 days to respond.
What we did for A restaurant with heavy seasonal turnover, Saskatoon, Saskatchewan
We treated the response as an evidence exercise rather than an argument. We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A restaurant with heavy seasonal turnover, Saskatoon, Saskatchewan
The proposed adjustment was withdrawn in full — all $100,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Scaling without breaking
Scaled To 21 Staff With $143,000 Of Working Capital Freed — Seasonal Landscaping Employer, Mississauga
Client: A landscaping company with seasonal staff · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
Headcount reached21
Working capital freed$143,000
Missed deadlinesZero
The situation — A landscaping company with seasonal staff, Mississauga, Ontario
A landscaping company with seasonal staff in Mississauga, Ontario was growing fast, with headcount reaching 21 in eighteen months. 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 for A landscaping company with seasonal staff, Mississauga, Ontario
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 built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A landscaping company with seasonal staff, Mississauga, Ontario
The business reached 21 staff with no missed remittance and no late filing. $143,000 of working capital was freed in the process.
Case Study 4 · Planning that cut the bill
$62,000 Saved By Correcting What Prior Filings Had Missed — Part-Time Program Employer, Barrie
Client: A charity with part-time program staff · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Saving identified$62,000
RecurringYes
Positions documentedAll
The situation — A charity with part-time program staff, Barrie, Ontario
A charity with part-time program staff in Barrie, Ontario asked for a second opinion on payroll reconciliation. That followed three years of rising tax. The review found company vehicles used personally with no logbook and no taxable benefit reported.
What we did for A charity with part-time program staff, Barrie, Ontario
We built the comparison first: current structure against two alternatives. 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 charity with part-time program staff, Barrie, Ontario
First-year saving of $62,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Cash and remittance control
Instalments Rebased, $126,000 Of Cash Returned To The Business — Stock-Option Tech Team, Brampton
Client: A growing tech team with stock options · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Cash returned$126,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A growing tech team with stock options, Brampton, Ontario
A growing tech team with stock options in Brampton, Ontario was paying instalments calculated on a prior year. That year no longer reflected the business. T4s that did not agree to the payroll register or the general ledger was tying up $126,000 of cash.
What we did for A growing tech team with stock options, Brampton, Ontario
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips.
The result — A growing tech team with stock options, Brampton, Ontario
$126,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 9 Weeks To 8 Days — Higher-Frequency Remitter, Winnipeg
Client: An employer whose remittance frequency moved up a threshold · Where: Winnipeg, Manitoba · Engagement: 9 weeks, fixed fee
Close time before9 weeks
Close time after8 days
Year-endReview, not rebuild
The situation — An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
The accounting file at an employer whose remittance frequency moved up a threshold in Winnipeg, Manitoba had a weak foundation. It was built on a director facing a personal assessment for unremitted source deductions. The year-end had taken 9 weeks each of the last three years.
What we did for An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
The file reconciles. Month-end closes in 8 days instead of 9 weeks, and the year-end is a review rather than a reconstruction.
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.
