6 worked Payroll System Migration 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 system migration work, not a specific client's file.
Case Study 1 · Backlog brought current
3 Years Filed, $101,000 Removed From The Assessed Balance — Contractor-Paid Clinic, Surrey
Client: A clinic paying its associates as contractors · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Years filed3
Assessed balance removed$101,000
CollectionsStopped
The situation — A clinic paying its associates as contractors, Surrey, British Columbia
A clinic paying its associates as contractors in Surrey, British Columbia had not filed for 3 years. The CRA had issued arbitrary assessments, and the business was carrying an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year on top of a growing interest balance.
What we did for A clinic paying its associates as contractors, Surrey, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing, filing the years in sequence rather than all at once.
The result — A clinic paying its associates as contractors, Surrey, British Columbia
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 — Seasonal Landscaping Employer, Toronto
Client: A landscaping company with seasonal staff · Where: Toronto, Ontario · Engagement: 10 weeks, fixed fee
Proposed tax cleared$52,000
Review duration10 weeks
OutcomeNo change
The situation — A landscaping company with seasonal staff, Toronto, Ontario
A landscaping company with seasonal staff in Toronto, Ontario was selected for review after remittances still going out monthly after the business had moved to the accelerated threshold showed up in the CRA's automated matching. The proposed adjustment on payroll system migration came to $52,000.
What we did for A landscaping company with seasonal staff, Toronto, Ontario
We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A landscaping company with seasonal staff, Toronto, Ontario
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 — Two-Province Retail Chain, Red Deer
Client: A retail chain across two provinces · Where: Red Deer, Alberta · Engagement: 4 weeks, fixed fee
Cash returned$31,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A retail chain across two provinces, Red Deer, Alberta
A retail chain across two provinces 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 for A retail chain across two provinces, Red Deer, Alberta
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result — A retail chain across two provinces, Red Deer, Alberta
$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 — High-Turnover Restaurant, Halifax
Client: A restaurant with heavy seasonal turnover · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Assessment vacated$120,000
Supporting recordsNow on file
AccountCleared
The situation — A restaurant with heavy seasonal turnover, Halifax, Nova Scotia
A restaurant with heavy seasonal turnover in Halifax, Nova Scotia was carrying $120,000 of penalties and interest arising from a director facing a personal assessment for unremitted source deductions, much of it accumulated during a period the CRA itself had delayed.
What we did for A restaurant with heavy seasonal turnover, Halifax, Nova Scotia
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 — A restaurant with heavy seasonal turnover, Halifax, Nova Scotia
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 — Company-Vehicle Employer, Calgary
Client: An employer providing company vehicles · Where: Calgary, Alberta · Engagement: 6 weeks, fixed fee
Tax deferred$220,000
TransferCompleted
RecordsReview-ready
The situation — An employer providing company vehicles, Calgary, Alberta
A generational transfer at an employer providing company vehicles 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 for An employer providing company vehicles, Calgary, 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, sequencing the steps so each one was complete and documented before the next depended on it.
The result — An employer providing company vehicles, Calgary, Alberta
$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 — Multi-Province Driver Fleet, Victoria
Client: A logistics operator with drivers in three provinces · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Headcount reached31
Working capital freed$160,000
Missed deadlinesZero
The situation — A logistics operator with drivers in three provinces, Victoria, British Columbia
A logistics operator with drivers in three provinces 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 for A logistics operator with drivers in three provinces, Victoria, British Columbia
We paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A logistics operator with drivers in three provinces, Victoria, British Columbia
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, 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.
