6 worked Payroll 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 services work, not a specific client's file.
Case Study 1 · Backlog brought current
4 Years Filed, $109,000 Removed From The Assessed Balance — Higher-Frequency Remitter, Calgary
Client: An employer whose remittance frequency moved up a threshold · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Years filed4
Assessed balance removed$109,000
CollectionsStopped
The situation — An employer whose remittance frequency moved up a threshold, Calgary, Alberta
An employer whose remittance frequency moved up a threshold in Calgary, Alberta had not filed for 4 years. The CRA had issued arbitrary assessments, and the business was carrying T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty on top of a growing interest balance.
What we did for An employer whose remittance frequency moved up a threshold, Calgary, Alberta
We started with the oldest year and worked forward so each year's closing balances fed the next. 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, filing the years in sequence rather than all at once.
The result — An employer whose remittance frequency moved up a threshold, Calgary, Alberta
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $109,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · Cash and remittance control
Instalments Rebased, $144,000 Of Cash Returned To The Business — Manufacturing Employer, Red Deer
Client: A 30-employee manufacturer · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
Cash returned$144,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A 30-employee manufacturer, Red Deer, Alberta
A 30-employee manufacturer 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 $144,000 of cash.
What we did for A 30-employee manufacturer, Red Deer, Alberta
We rebased the instalments on the current-year estimate rather than the prior-year default, and paid the accrued bonus inside the 179-day window and kept the deduction in the year it was accrued.
The result — A 30-employee manufacturer, Red Deer, Alberta
$144,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 3 · Sale and succession
Intergenerational Transfer Completed With $540,000 Deferred — Mixed-Crew Construction Firm, Hamilton
Client: A construction firm with union and non-union crews · Where: Hamilton, Ontario · Engagement: 11 weeks, fixed fee
Tax deferred$540,000
TransferCompleted
RecordsReview-ready
The situation — A construction firm with union and non-union crews, Hamilton, Ontario
A generational transfer at a construction firm with union and non-union crews in Hamilton, Ontario had been discussed for years without a plan. A single shareholder holding every share, with no room to multiply the exemption meant the transfer as contemplated would have been fully taxable.
What we did for A construction firm with union and non-union crews, Hamilton, Ontario
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, sequencing the steps so each one was complete and documented before the next depended on it.
The result — A construction firm with union and non-union crews, Hamilton, Ontario
$540,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 4 · Records and systems rebuilt
14 Months Reconciled And $18,500 Of Input Tax Recovered — Security Services Contractor, Guelph
The situation — A security services contractor, Guelph, Ontario
A security services contractor in Guelph, Ontario was carrying remittances still going out monthly after the business had moved to the accelerated threshold. Nothing reconciled, and every filing started with 14 months of cleanup.
What we did for A security services contractor, Guelph, Ontario
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 security services contractor, Guelph, Ontario
14 months reconciled to the bank. The close now takes 7 days, and $18,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $111,000 Across 7 Open Years — Multi-Province Driver Fleet, Brampton
Client: A logistics operator with drivers in three provinces · Where: Brampton, Ontario · Engagement: 9 weeks, fixed fee
Recovered$111,000
Open years claimed7
Ongoing trackingIn place
The situation — A logistics operator with drivers in three provinces, Brampton, Ontario
An incentive review at a logistics operator with drivers in three provinces in Brampton, Ontario started from a simple question: what has never been claimed? The answer ran to 7 years, driven by T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty.
What we did for A logistics operator with drivers in three provinces, Brampton, Ontario
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A logistics operator with drivers in three provinces, Brampton, Ontario
The credits produced $111,000 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: Edmonton, Alberta · Engagement: 9 weeks, fixed fee
Penalty cancelled$84,000
Relief applicationGranted
ReturnAccepted as filed
The situation — An employer providing company vehicles, Edmonton, Alberta
An employer providing company vehicles in Edmonton, Alberta had already missed one deadline and was about to miss a second. Behind it sat an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year, and a penalty of $84,000 was accruing.
What we did for An employer providing company vehicles, Edmonton, Alberta
We split the work into what had to happen before the deadline and what could follow it, then 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 — An employer providing company vehicles, Edmonton, Alberta
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $84,000 of the penalty already assessed on the earlier year.
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.
