6 worked Record of Employment Filing 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 record of employment filing work, not a specific client's file.
Case Study 1 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $80,000 — Home-Care Agency, Red Deer
Client: A home-care agency · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$80,000
Filed with22 days to spare
Next yearPapers ready
The situation — A home-care agency, Red Deer, Alberta
A home-care agency in Red Deer, Alberta was weeks away from the deadline for record of employment filing. Behind that sat an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year. The exposure if the date slipped was around $80,000.
What we did for A home-care agency, Red Deer, Alberta
We filed the outstanding slips and summary and requested relief on the per-slip penalty with the reasons documented in writing. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A home-care agency, Red Deer, Alberta
Filed with 22 days to spare. $80,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 2 · Sale and succession
$835,000 Sheltered By The Lifetime Capital Gains Exemption — High-Turnover Restaurant, Regina
Client: A restaurant with heavy seasonal turnover · Where: Regina, Saskatchewan · Engagement: 8 weeks, fixed fee
Gain sheltered$835,000
ClosingOn schedule
Share qualificationMet
The situation — A restaurant with heavy seasonal turnover, Regina, Saskatchewan
A restaurant with heavy seasonal turnover in Regina, Saskatchewan had an offer on the table and 11 months to close. The shares did not qualify for the capital gains exemption. No valuation on file to support the price the parties had agreed was part of the reason.
What we did for A restaurant with heavy seasonal turnover, Regina, Saskatchewan
We purified the corporation so the shares met the qualifying tests. 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. All of it was done well ahead of the closing date.
The result — A restaurant with heavy seasonal turnover, Regina, Saskatchewan
The sale closed on schedule with $835,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Planning that cut the bill
$41,000 Cut From The Annual Tax Bill — Manufacturing Employer, Burnaby
Client: A 30-employee manufacturer · Where: Burnaby, British Columbia · Engagement: 8 weeks, fixed fee
First-year saving$41,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A 30-employee manufacturer, Burnaby, British Columbia
A 30-employee manufacturer in Burnaby, British Columbia was compliant but paying more than it needed to. The prior year had been filed correctly. It still left remittances still going out monthly after the business had moved to the accelerated threshold on the table.
What we did for A 30-employee manufacturer, Burnaby, British Columbia
We modelled the current position against the alternatives before changing anything. Then we paid the accrued bonus inside the 180-day window and kept the deduction in the year it was accrued.
The result — A 30-employee manufacturer, Burnaby, British Columbia
The change saved $41,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $116,000 Vacated — Part-Time Program Employer, Saskatoon
Client: A charity with part-time program staff · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Assessment vacated$116,000
Supporting recordsNow on file
AccountCleared
The situation — A charity with part-time program staff, Saskatoon, Saskatchewan
A charity with part-time program staff in Saskatoon, Saskatchewan was carrying $116,000 of penalties and interest. The charges arose from long-term contractors who met every test for employment. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A charity with part-time program staff, Saskatoon, Saskatchewan
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 framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A charity with part-time program staff, Saskatoon, Saskatchewan
The assessment was vacated. $116,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 5 · Missed incentive claimed
$46,000 In Credits Claimed That Prior Filings Had Missed — Company-Vehicle Employer, Surrey
Client: An employer providing company vehicles · Where: Surrey, British Columbia · Engagement: 4 weeks, fixed fee
Credits claimed$46,000
Years adjusted7
Review outcomeNo adjustment
The situation — An employer providing company vehicles, Surrey, British Columbia
An employer providing company vehicles in Surrey, British Columbia had been filing for 7 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year.
What we did for An employer providing company vehicles, Surrey, British Columbia
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s.
The result — An employer providing company vehicles, Surrey, British Columbia
$46,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 6 · Cash and remittance control
Instalments Rebased, $103,000 Of Cash Returned To The Business — Higher-Frequency Remitter, Winnipeg
Client: An employer whose remittance frequency moved up a threshold · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Cash returned$103,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
An employer whose remittance frequency moved up a threshold in Winnipeg, Manitoba was paying instalments calculated on a prior year. That year no longer reflected the business. T4s that did not agree to the payroll register or the general ledger was tying up $103,000 of cash.
What we did for An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, 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.
The result — An employer whose remittance frequency moved up a threshold, Winnipeg, Manitoba
$103,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
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.
