6 worked Payroll Setup 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 setup services work, not a specific client's file.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $25,000 Across 5 Open Years — Security Services Contractor, Barrie
The situation — A security services contractor, Barrie, Ontario
An incentive review at a security services contractor in Barrie, Ontario started from a simple question: what has never been claimed? The answer ran to 5 years, driven by an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year.
What we did for A security services contractor, Barrie, Ontario
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A security services contractor, Barrie, Ontario
The credits produced $25,000 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.
Client: An employer providing company vehicles · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Overpayment refunded$37,000
Late remittances sinceZero
ScheduleAutomated
The situation — An employer providing company vehicles, Moncton, New Brunswick
Remittances at an employer providing company vehicles in Moncton, New Brunswick were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty.
What we did for An employer providing company vehicles, Moncton, New Brunswick
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, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — An employer providing company vehicles, Moncton, New Brunswick
Penalties stopped from the following remittance onwards, and $37,000 of overpaid instalments was refunded.
Client: A retail chain across two provinces · Where: Windsor, Ontario · Engagement: 3 weeks, fixed fee
Annual saving$49,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A retail chain across two provinces, Windsor, Ontario
A retail chain across two provinces in Windsor, Ontario was carrying a director facing a personal assessment for unremitted source deductions, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A retail chain across two provinces, Windsor, Ontario
Working with the client's lawyer, 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 prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A retail chain across two provinces, Windsor, Ontario
The structure now matches the business. Annual saving of $49,000, and the reorganisation itself was tax-neutral.
Case Study 4 · CRA review defended
Audit Defence Closed In 10 Weeks, $120,000 Cleared — Contractor-Paid Clinic, Victoria
Client: A clinic paying its associates as contractors · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Proposed tax cleared$120,000
Review duration10 weeks
OutcomeNo change
The situation — A clinic paying its associates as contractors, Victoria, British Columbia
A clinic paying its associates as contractors in Victoria, British Columbia was selected for review after long-term contractors who met every test for employment showed up in the CRA's automated matching. The proposed adjustment on payroll setup services came to $120,000.
What we did for A clinic paying its associates as contractors, Victoria, British Columbia
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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A clinic paying its associates as contractors, Victoria, British Columbia
The review closed with no change. $120,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Records and systems rebuilt
20 Months Reconciled And $5,400 Of Input Tax Recovered — Home-Care Agency, Red Deer
Client: A home-care agency · Where: Red Deer, Alberta · Engagement: 4 weeks, fixed fee
Months reconciled20
Input tax recovered$5,400
Close time6 days
The situation — A home-care agency, Red Deer, Alberta
A home-care agency in Red Deer, Alberta was carrying an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year. Nothing reconciled, and every filing started with 20 months of cleanup.
What we did for A home-care agency, Red Deer, Alberta
We rebuilt from source rather than correcting on top of the existing file. We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing, then set the routine that keeps it clean.
The result — A home-care agency, Red Deer, Alberta
20 months reconciled to the bank. The close now takes 6 days, and $5,400 of previously unclaimable input tax was recovered in the process.
Case Study 6 · Backlog brought current
4 Years Filed, $85,000 Removed From The Assessed Balance — Dental Practice, Kitchener
Client: A dental practice · Where: Kitchener, Ontario · Engagement: 8 weeks, fixed fee
Years filed4
Assessed balance removed$85,000
CollectionsStopped
The situation — A dental practice, Kitchener, Ontario
A dental practice in Kitchener, Ontario had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying T4s that did not agree to the payroll register or the general ledger on top of a growing interest balance.
What we did for A dental practice, Kitchener, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. We corrected the CPP and EI withholding for the balance of the year and set the employee up to recover the over-deduction on the personal return, filing the years in sequence rather than all at once.
The result — A dental practice, Kitchener, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $85,000 of the estimated balance came off, with a payment arrangement covering the rest.
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.
