6 worked Small Business 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 small business payroll services work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $42,000 Cut From A 6-Year Backlog — Seasonal Landscaping Employer, Victoria
Client: A landscaping company with seasonal staff · Where: Victoria, British Columbia · Engagement: 9 weeks, fixed fee
Balance reduced by$42,000
Backlog cleared6 years
CollectionsHalted
The situation — A landscaping company with seasonal staff, Victoria, British Columbia
By the time a landscaping company with seasonal staff in Victoria, British Columbia called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat T4 slips filed weeks after the deadline with no relief request made on the per-slip penalty.
What we did for A landscaping company with seasonal staff, Victoria, British Columbia
We reconstructed the records year by year. 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. Each filing replaced an arbitrary assessment with a real one.
The result — A landscaping company with seasonal staff, Victoria, British Columbia
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $42,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Sale and succession
Intergenerational Transfer Completed With $850,000 Deferred — Multi-Province Driver Fleet, Barrie
Client: A logistics operator with drivers in three provinces · Where: Barrie, Ontario · Engagement: 8 weeks, fixed fee
Tax deferred$850,000
TransferCompleted
RecordsReview-ready
The situation — A logistics operator with drivers in three provinces, Barrie, Ontario
A generational transfer at a logistics operator with drivers in three provinces in Barrie, Ontario 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 A logistics operator with drivers in three provinces, Barrie, Ontario
We moved the account to the correct remitter frequency and caught up the arrears. We filed a taxpayer relief request that cancelled the bulk of the penalty. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A logistics operator with drivers in three provinces, Barrie, Ontario
$850,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 3 · Missed incentive claimed
$128,000 Credit Claim Filed And Accepted Without Adjustment — Higher-Frequency Remitter, Lethbridge
Client: An employer whose remittance frequency moved up a threshold · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Claim value$128,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — An employer whose remittance frequency moved up a threshold, Lethbridge, Alberta
An employer whose remittance frequency moved up a threshold in Lethbridge, Alberta assumed the credits did not apply to a business its size. Long-term contractors who met every test for employment meant they had applied all along.
What we did for An employer whose remittance frequency moved up a threshold, Lethbridge, Alberta
We identified the qualifying activity and built the documentation to support it. 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 result — An employer whose remittance frequency moved up a threshold, Lethbridge, Alberta
$128,000 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 · CRA review defended
$113,000 Reassessment Reduced To Nil On Review — Part-Time Program Employer, Vancouver
Client: A charity with part-time program staff · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Reassessment reduced toNil
Tax protected$113,000
Prior filingsUndisturbed
The situation — A charity with part-time program staff, Vancouver, British Columbia
A review notice arrived at a charity with part-time program staff in Vancouver, British Columbia, covering small business payroll services for two tax years. The auditor's working position was an adjustment of $113,000. It was driven by long-term contractors who met every test for employment.
What we did for A charity with part-time program staff, Vancouver, British Columbia
Rather than negotiate, we rebuilt the record. We reconstructed vehicle logbooks, calculated the standby charge and operating benefit properly, and amended the affected T4s. We then submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A charity with part-time program staff, Vancouver, British Columbia
The auditor accepted the documented position and closed the review without adjustment, protecting $113,000 and leaving the prior filings undisturbed.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $80,000 Freed — High-Turnover Restaurant, Ottawa
Client: A restaurant with heavy seasonal turnover · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
Cash freed$80,000
Compliance failuresNone
ReportingMonthly
The situation — A restaurant with heavy seasonal turnover, Ottawa, Ontario
A restaurant with heavy seasonal turnover in Ottawa, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. Remittances still going out monthly after the business had moved to the accelerated threshold already sat in the file.
What we did for A restaurant with heavy seasonal turnover, Ottawa, Ontario
We reconciled the payroll register, general ledger and T4 summary to the cent, then filed the amended slips. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A restaurant with heavy seasonal turnover, Ottawa, Ontario
Growth was absorbed without a compliance failure. $80,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Planning that cut the bill
$23,500 Saved By Correcting What Prior Filings Had Missed — Mixed-Crew Construction Firm, Surrey
Client: A construction firm with union and non-union crews · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Saving identified$23,500
RecurringYes
Positions documentedAll
The situation — A construction firm with union and non-union crews, Surrey, British Columbia
A construction firm with union and non-union crews in Surrey, British Columbia asked for a second opinion on small business payroll services. That followed three years of rising tax. The review found an employee over-deducted for CPP and EI after being moved between two related payroll accounts mid-year.
What we did for A construction firm with union and non-union crews, Surrey, British Columbia
We built the comparison first: current structure against two alternatives. 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, Surrey, British Columbia
First-year saving of $23,500, with the same benefit recurring. Every position taken is documented and supported in the file.
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.
