6 worked Payroll Year-End 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 year-end services work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
Books Rebuilt From Source, $7,300 In Unclaimed Input Tax Found — Home-Care Agency, Surrey
Client: A home-care agency · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Unclaimed tax found$7,300
Records rebuilt12 months
ProcessDocumented
The situation — A home-care agency, Surrey, British Columbia
A home-care agency in Surrey, British Columbia could not answer basic questions about its own numbers. An employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year sat between the bank statements and the ledger.
What we did for A home-care agency, Surrey, British Columbia
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A home-care agency, Surrey, British Columbia
Records rebuilt and reconciled, $7,300 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 2 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $35,500 Saved Each Year — Multi-Province Driver Fleet, Victoria
Client: A logistics operator with drivers in three provinces · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Annual saving$35,500
Tax on reorganisationDeferred
Elections filedOn time
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 had outgrown the structure it started with. T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A logistics operator with drivers in three provinces, Victoria, British Columbia
We mapped the current structure and modelled the target. Then we reviewed each contractor against the CRA’s control and integration tests and converted those who met the employment tests. We priced the transition before it was forced by a ruling. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A logistics operator with drivers in three provinces, Victoria, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $35,500 a year while removing the exposure the old one carried.
Case Study 3 · Missed incentive claimed
$134,000 Credit Claim Filed And Accepted Without Adjustment — Mixed-Crew Construction Firm, Vancouver
Client: A construction firm with union and non-union crews · Where: Vancouver, British Columbia · Engagement: 10 weeks, fixed fee
Claim value$134,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A construction firm with union and non-union crews, Vancouver, British Columbia
A construction firm with union and non-union crews in Vancouver, British Columbia assumed the credits did not apply to a business its size. A director facing a personal assessment for unremitted source deductions meant they had applied all along.
What we did for A construction firm with union and non-union crews, Vancouver, British Columbia
We identified the qualifying activity and built the documentation to support it. Then we paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued.
The result — A construction firm with union and non-union crews, Vancouver, British Columbia
$134,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 4 · Planning that cut the bill
Remuneration Review Saved $68,000 Across Corporate And Personal Returns — Contractor-Paid Clinic, London
Client: A clinic paying its associates as contractors · Where: London, Ontario · Engagement: 6 weeks, fixed fee
Combined saving$68,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A clinic paying its associates as contractors, London, Ontario
Nothing was wrong at a clinic paying its associates as contractors in London, Ontario. The filings were on time and accurate. What they were not was planned. Long-term contractors who met every test for employment had never been reviewed.
What we did for A clinic paying its associates as contractors, London, Ontario
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 ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A clinic paying its associates as contractors, London, Ontario
$68,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Client: A retail chain across two provinces · Where: Barrie, Ontario · Engagement: 7 weeks, fixed fee
Penalty cancelled$37,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A retail chain across two provinces, Barrie, Ontario
A retail chain across two provinces in Barrie, Ontario had already missed one deadline and was about to miss a second. Behind it sat company vehicles used personally with no logbook and no taxable benefit reported. A penalty of $37,000 was accruing.
What we did for A retail chain across two provinces, Barrie, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result — A retail chain across two provinces, Barrie, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $37,000 of the penalty already assessed on the earlier year.
Case Study 6 · Backlog brought current
4 Years Filed, $126,000 Removed From The Assessed Balance — Higher-Frequency Remitter, Ottawa
Client: An employer whose remittance frequency moved up a threshold · Where: Ottawa, Ontario · Engagement: 5 weeks, fixed fee
Years filed4
Assessed balance removed$126,000
CollectionsStopped
The situation — An employer whose remittance frequency moved up a threshold, Ottawa, Ontario
An employer whose remittance frequency moved up a threshold in Ottawa, Ontario had not filed for 4 years. The CRA had issued arbitrary assessments. The business was carrying T4s that did not agree to the payroll register or the general ledger. That came on top of a growing interest balance.
What we did for An employer whose remittance frequency moved up a threshold, Ottawa, 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. We set the employee up to recover the over-deduction on the personal return. We filed the years in sequence rather than all at once.
The result — An employer whose remittance frequency moved up a threshold, Ottawa, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $126,000 of the estimated balance came off, with a payment arrangement covering the rest.
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.
