6 Payroll System Migration 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 system migration work, not a general example.
Case Study 1 · Backlog brought current
3 Years Filed, $101,000 Removed From The Assessed Balance — 30-Employee Manufacturer, Surrey
Client: A 30-employee manufacturer · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Years filed3
Assessed balance removed$101,000
CollectionsStopped
The situation
A 30-employee manufacturer in Surrey, British Columbia had not filed for 3 years. The CRA had issued arbitrary assessments, and the business was carrying long-term contractors who met every test for employment 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 reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, 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 $101,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · CRA review defended
Audit Defence Closed In 10 Weeks, $52,000 Cleared — Construction Firm with Union, Toronto
Client: A construction firm with union and non-union crews · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
Proposed tax cleared$52,000
Review duration10 weeks
OutcomeNo change
The situation
A construction firm with union and non-union crews in Toronto, Ontario was selected for review after a director facing a personal assessment for unremitted source deductions showed up in the CRA's automated matching. The proposed adjustment on payroll system migration came to $52,000.
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. 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. $52,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 3 · Cash and remittance control
Instalments Rebased, $31,000 Of Cash Returned To The Business — Security Services Contractor, Red Deer
Client: A security services contractor · Where: Red Deer, Alberta · Engagement: 4 weeks, fixed fee
Cash returned$31,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A security services contractor in Red Deer, Alberta was paying instalments calculated on a prior year that no longer reflected the business. Company vehicles used personally with no logbook and no taxable benefit reported was tying up $31,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result
$31,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $120,000 Vacated — Logistics Operator with Drivers, Halifax
Client: A logistics operator with drivers in three provinces · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Assessment vacated$120,000
Supporting recordsNow on file
AccountCleared
The situation
A logistics operator with drivers in three provinces in Halifax, Nova Scotia was carrying $120,000 of penalties and interest arising from remittances still going out monthly after the business had moved to the accelerated threshold, much of it accumulated during a period the CRA itself had delayed.
What we did
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $120,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Sale and succession
Intergenerational Transfer Completed With $220,000 Deferred — Home-Care Agency, Calgary
Client: A home-care agency · Where: Calgary, Alberta · Engagement: 6 weeks, fixed fee
Tax deferred$220,000
TransferCompleted
RecordsReview-ready
The situation
A generational transfer at a home-care agency in Calgary, Alberta had been discussed for years without a plan. Passive assets sitting inside the operating company, disqualifying the shares meant the transfer as contemplated would have been fully taxable.
What we did
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$220,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 6 · Scaling without breaking
Scaled To 31 Staff With $160,000 Of Working Capital Freed — Growing Tech Team, Victoria
Client: A growing tech team with stock options · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Headcount reached31
Working capital freed$160,000
Missed deadlinesZero
The situation
A growing tech team with stock options in Victoria, British Columbia was growing fast — headcount to 31 in eighteen months — and 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
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 the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 31 staff with no missed remittance and no late filing. $160,000 of working capital was freed in the process.
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.
