6 Payroll Setup 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 setup services work, not a general example.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $25,000 Across 5 Open Years — Security Services Contractor, Barrie
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 long-term contractors who met every test for employment.
What we did
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
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: A growing tech team with stock options · Where: Moncton, New Brunswick · Engagement: 9 weeks, fixed fee
Overpayment refunded$37,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a growing tech team with stock options in Moncton, New Brunswick were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat remittances still going out monthly after the business had moved to the accelerated threshold.
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, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
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 in Windsor, Ontario was carrying T4s that did not agree to the payroll register or the general ledger, 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 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
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 — Construction Firm with Union, Victoria
Client: A construction firm with union and non-union crews · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Proposed tax cleared$120,000
Review duration10 weeks
OutcomeNo change
The situation
A construction firm with union and non-union crews 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
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
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 in Red Deer, Alberta was carrying a director facing a personal assessment for unremitted source deductions. Nothing reconciled, and every filing started with 20 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, then set the routine that keeps it clean.
The result
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 — Restaurant with Heavy Seasonal, Kitchener
Client: A restaurant with heavy seasonal turnover · Where: Kitchener, Ontario · Engagement: 8 weeks, fixed fee
Years filed4
Assessed balance removed$85,000
CollectionsStopped
The situation
A restaurant with heavy seasonal turnover in Kitchener, Ontario had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying company vehicles used personally with no logbook and no taxable benefit reported on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. 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, filing the years in sequence rather than all at once.
The result
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, 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.
